FreeSeas Inc (NASDAQ:FREE), a leading transporter of dry-bulk cargoes and owner of a tanker operating company, declared the results of the recently called shareholders meeting. As per the reports, the meeting was held on December 28 to discuss a few very important issues related to shareholders’ interest in the company and other corporate affairs.
Insights from Results
At the end of the meeting, shareholders gave discretionary authority to company’s board of directors to take a call on two different issues-
- Amendment of Restated Articles of Incorporation of FreeSeas to consolidate the issued as well as outstanding shares. Post this arrangement, shares of company’s common stock reclassified and combined into one share of common stock at a ratio ranging between one for two and one for sixty.
- Decide whether to allow the shareholders to receive a common stock share from company’s transfer agent or make certain arrangements for the disposition of their fractional interests.
FreeSeas will further take decisions following these proposals and regularize them in the near future.
Debt Settlement By FreeSeas
Before this, FreeSeas Inc (NASDAQ:FREE) also announced that it had successfully settled $37.6 million worth of debt that it owed to Credit Suisse. Reports claim that FreeSeas made a payment of $22.6 million and got the waiver of $15 million from Credit Suisse. FreeSeas stated that it made this funding out of the $25 million proceeds received from the sale of Series C Warrants as well as Series D Convertible Preferred Stock.
The entire senior management team of the company is delighted to announce this update and hopes that it will pave the way for further growth in FY17. According to Ion Varouxakis, Chief Executive Officer, FreeSeas, the company settled its debt to Credit Suisse with the help of $15 million debt forgiveness. It will continue to take such initiatives in the coming months to clear all the debts and turn itself into 100% debt free entity as soon as possible.
