Boston, MA 10/28/2013 (wallstreetpr) – For a very long time, Freeseas Inc (NASDAQ:FREE) has not enjoyed its stay in business and trading at the NASDAQ exchange platform. It is one of the penny stocks holding onto $0.43 in per share value as per the previous closing. The company’s one year low is $0.17 and high of $5.80. The Athens –based company owns and operates drybulk vessels. The company’s fleet includes Handysize and Handymax vessels.
The Marshall Islands corporation on October 10, announced its debt elimination of $30 million. This announcement followed the approval of the terms and conditions of an exchange agreement a day earlier by the Supreme Court of the State of New York. That exchange agreement involved the company and Crede Capital Group through the latter’s wholly-owned subsidiary called Crede CG III Ltd.
The drybulk transportation company’s CEO Ion G. Varouxakis made the encouraging announcement. Following the deal, Freeseas eliminated a huge chunk of its total bank debt by a whopping $30 million. This means that Freeseas significantly transformed its balance sheet and set itself on the path for future growth. Also, the deal opened the doors for the company to pursue immediate gains estimated to be more than $12 million.
The settlement deal that resulted in the extinguishment of Freeseas’ $30 million in bank debt had been a long time coming. It began with amendment to a previous settlement agreement with Deutsche Bank which allowed Crede to become a party to the agreement. As a result, Crede agreed to buy $10.5 million of the outstanding debt owned by Freeseas to Deutsche Bank.
Upon receipt of the $10.5 million funds from Crede, Deutsche Bank wrote off the outstanding debt together with the overdue interest according to the terms of the agreement. The bank also released the company’s properties held as collateral for the loan. With that burdening debt behind it, Freeseas is now free enough to focus on its core business and pursue profitability avenues so as to return money to its investors.
