Athens, Greece,, Sept. 26, 2013 (GLOBE NEWSWIRE) -- FreeSeas Inc. ( Nasdaq CM: FREE)( "FreeSeas'' or the " Company"), a transporter of dry-bulk cargoes through the ownership and operation of a fleet of six Handysize vessels and one Handymax vessel, announced today that it has entered into an assignment and amendment agreement (the " Assignment") with Deutsche Bank Nederland N.V.(" Deutsche Bank"), a Magna Group affiliate fund Hanover Holdings I, LLC (" Hanover"), Crede CG III, Ltd (" Crede") a wholly-owned subsidiary of Crede Capital Group, and various wholly-owned subsidiaries of the Company.
Mr. Ion G. Varouxakis, Chairman, President and Chief Executive Officer of the Company made the following comments: "We are pleased to enter into the Assignment, which will remove, immediately upon appropriate court approval, approximately $30 million of debt from our balance sheet. Since our last announcement on July 5, 2013, we have completed our last trade debt swap into equity of about $5.8 million and our equity line. Based on our improved capital structure and debt free vessels, we will now be able to expedite our plans to pursue opportunities for growth, instead of waiting months for Deutsche Bank to be repaid, capitalizing on the current low market values for vessels and improved shipping market conditions. We have greatly appreciated Magna Group's contribution, who was instrumental in structuring and executing a series of transactions including the Settlement Agreement, optimally positioning us in the market."
As previously reported, on July 5, 2013, the Company entered into a Debt Purchase and Settlement Agreement (the " Settlement Agreement") with Deutsche Bank, Hanover and the various wholly-owned subsidiaries of the Company.Pursuant to the terms of the Settlement Agreement, Hanover agreed to purchase USD$10,500,000 of outstanding indebtedness owed by the Company to Deutsche Bank in accordance with the terms thereof. Upon payment in full of the purchase price to Deutsche Bank for such purchased indebtedness in accordance with the terms of the Settlement Agreement, the remaining outstanding indebtedness of FreeSeas and its subsidiaries to Deutsche Bank will be forgiven, and the mortgages granted to Deutsche Bank on both of its two security vessels discharged and the Company would own these two vessels free and clear of all such liens granted to Deutsche Bank.