The Nasdaq-listed shipowner is now free to embark upon itsexpansion plans after the Supreme Court of New York gave the greenlight to anagreement with lenders that wipes $30m of borrowings off its balance sheet.
Under the deal Crede Capital Group has agreed to purchase$10.5m of debt from Deutsche Bank which will forgive the remaining $19.5m owedby FreeSeas.
The German bank will also release all collateral associatedwith the loan including the lifting of mortgages over a pair of vessels.
As TradeWinds has previously reported, the loan was againstthe 24,000-dwt Free Maverick and Free Knight (both built 1998).
Ion Varouxakis, CEO, said: "This transaction willresult in significant gains, which are presently estimated to exceed $12million.
“As a result, our balance sheet will be completelytransformed, resetting us in position for future growth."
When first announced in September, Varouxakis said theimproved capital structure and debt reduction would allow it to “capitalise onthe current low market values for vessels and improved shipping marketconditions.”
The Nasdaq-listed owner currently operates a fleet of six handysizeand one handymax bulkers.
