Greece: NewLead Sells Two Tanker Vessels

NewLead Holdings Ltd. yesterday announced that the Company entered into an agreement with Piraeus Bank S.A. to proceed with the sale of the two tanker vessels, Hiona and Hiotissa, for an aggregate amount of $57.0 million and to convert, subject to satisfaction of certain conditions precedent by the Company, $18.1 million debt into 22.1 million shares of NewLead’s common stock.

As a result of this transaction, NewLead will be released from all obligations under the Piraeus Bank credit facility. These transactions are expected to occur in the third quarter of 2012 and are subject to certain conditions.

Michael Zolotas, President and Chief Executive Officer of NewLead, stated, “The sale of the two vessels is one more step forward in the completion of NewLead’s restructuring. Today’s agreement with Piraeus Bank to convert debt to equity demonstrates the confidence of our lenders in NewLead’s prospects post restructuring.”

Michael Zolotas added: “Since July 2011 we have reduced NewLead’s indebtedness by an aggregate amount of approximately $445.0 million. Following the successful completion of our overall restructuring efforts, we expect to reduce the amount of debt on our balance sheet to around $58.0 million.”

As a result of this transaction, it is expected that NewLead will have a total of 306,943,428 shares of common stock outstanding.

NewLead is currently discussing a similar arrangement with Lemissoler Maritime Company W.L.L. Under the agreement with Piraeus Bank (as well as under the terms of the previously announced transaction with Cyprus Popular Bank), any such conversion of debt to equity must be on substantially the same terms.

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Source: NewLead, June 22, 2012