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NewLead Holdings Ltd. Completes Financial Restructuring And Launches Commodity Unit

PIRAEUS, Greece, Dec. 3, 2012 /PRNewswire/ -- NewLead Holdings Ltd. (NASDAQ: NEWL) ("NewLead" or the "Company") today announced that the Company has signed definitive agreements completing its financial restructuring. Closing of transaction is subject to certain conditions and is expected to occur within December 2012.

Michael Zolotas, President and Chief Executive Officer of NewLead, stated, "Almost two years ago, we perceived the market would be deteriorating for the foreseeable future, so we made the difficult decision to approach our commercial partners and commence a voluntary restructuring of our business and balance sheet. With the expert advice of Moelis & Company, S. Goldman Advisors LLC, and Fried, Frank, Harris, Shriver & Jacobson LLP, we have emerged from this process as a vital and competitive organization. I am deeply grateful to the people of NewLead for their hard work and loyalty during this challenging period."  

Michael Zolotas continued, "With the restructuring effectively complete, we will seek to grow the Company by exploring existing and new business segments. With our newly stable balance sheet and business, we believe that we will be able to profitably expand our business within a short period of time."

Post Restructuring Debt and Shares Outstanding

NewLead reduced the amount of debt in its balance sheet by approximately $578.3 million to around $108.0 million. Of this amount, $50 million will be represented by a 4.5% convertible note due in 2022. At the option of the Company, annual interest payments and principal repayment upon the maturity of the note may be satisfied by issuing additional shares of common stock.

As of November 30, 2012, NewLead had 309,510,713 shares of common stock outstanding. Upon closing of the final phase of the restructuring, expected during December of 2012, NewLead expects to have a total of 442,880,573 shares of common stock outstanding. 

NewLead's initial fleet will consist of four vessels under control. Management will now focus on leveraging longstanding shipping relationships to build their fleet in the tanker and dry bulk sector.

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