NEW YORK (TheStreet) -- Shares of NewLead Holdings Ltd. (NEWL) are soaring, up 40.32% to 0.870, after the Greek shipping company announced today that on June 3 the company was granted a Temporary Restraining Order against Ironridge Global IV, Ltd. prohibiting the further issuance of common shares in payment of dividends on Series A Preference Shares of NewLead.
The TRO is pending the hearing and decision on Petition for Preliminary Injunctive Relief Pending Arbitration.
On June 3, NewLead filed in the U.S. District Court, Southern District of New York a Petition for Temporary Restraining Order and Injunction In Aid of International Arbitration Proceedings to prevent the conversion of any Preference Shares of NewLead into NewLead's common shares pursuant to conversion of its outstanding Preference Shares solely held by Ironridge as well as the issuing of any of the Company's common shares to Ironridge.
Previously, NewLead agreed to issue up to $25.0 million in Preference Shares over a period of time, subject to a number of conditions. NewLead subsequently came to believe that Ironridge breached material restrictions on its trading activity, among other things, and notified Ironridge that consequently the transaction documents were no longer valid.
NEWL data by YCharts