TOP Ships Announces Termination of Five Leases

2008-08-07 06:35:00

TOP Ships Announces Termination of Five Leases

    ATHENS, Greece, Aug. 7 /EMWNews/ -- TOP Ships Inc.

(Nasdaq: TOPS) announced today that it has entered into agreements to

terminate its bareboat charters for four Suezmax tankers, the Priceless

(DWT 154,970, built 1991), the Flawless (DWT 154,970, built 1991), the

Stopless (DWT 154,970, built 1991) and the Timeless (DWT 154,970, built

1991) and one Handymax tanker, the Sovereign (DWT 47,071, built 1992), in

connection with the sale of these vessels by their owners to third parties.

    The Suezmax charters are expected to be terminated by the end of

September of 2008 upon sale of the vessels from their owners to third

parties. The Handymax lease is expected to be terminated by August 20, 2008

upon sale of the vessel from its owner to third parties.

    The aggregate unamortized portion of the deferred gain from the

original sales of approximately $13.3 million is expected to be recognized

in the third quarter of 2008. Moreover, the Company will receive the amount

of approximately $11.3 million in cash, which represents the partial

redemption of the initial seller's credit agreement with the lessors of the

four Suezmaxes.

    About TOP Ships Inc.

    TOP Ships Inc., formerly known as TOP Tankers Inc., is an international

provider of worldwide seaborne crude oil and petroleum products and drybulk

transportation services. Upon delivery of the remaining suezmaxes to their

new owners, the Company will operate a combined tanker and drybulk fleet as


    -- A fleet of seven double-hull Handymax tankers, with a total carrying

capacity of approximately 0.3 million dwt, of which 58% are sister ships.

All of the Company's Handymaxes will be on time charter contracts with an

average term of two years with all of the time charters including profit

sharing agreements above their base rates.

    -- Six newbuilding product tankers, which are expected to be delivered

in the first half of 2009. All the expected newbuildings have fixed rate

bareboat employment agreements for periods between seven and ten years.

    -- a fleet of five drybulk vessels with a total carrying capacity of

approximately 0.3 million dwt, of which 70% are sister ships. All of the

Company's drybulk vessels have fixed rate employment contracts for an

average period of 30 months.

    Forward Looking Statement

    Certain statements and information included in this release constitute

"forward-looking statements" within the meaning of the Federal Private

Securities Litigation Reform Act of 1995. The Private Securities Litigation

Reform Act of 1995 provides safe harbor protections for forward-looking

statements in order to encourage companies to provide prospective

information about their business. Forward-looking statements reflect our

current views with respect to future events and financial performance and

may include statements concerning plans, objectives, goals, strategies,

future events or performance, and underlying assumptions and other

statements, which are other than statements of historical facts.

    The Company desires to take advantage of the safe harbor provisions of

the Private Securities Litigation Reform Act of 1995 and is including this

cautionary statement in connection with this safe harbor legislation. The

words "believe," "anticipate," "intends," "estimate," "forecast,"

"project," "plan," "potential," "will," "may," "should," "expect,"

"pending" and similar expressions identify forward-looking statements. The

forward-looking statements in this press release are based upon various

assumptions, many of which are based, in turn, upon further assumptions,

including without limitation, our management's examination of historical

operating trends, data contained in our records and other data available

from third parties. Although we believe that these assumptions were

reasonable when made, because these assumptions are inherently subject to

significant uncertainties and contingencies which are difficult or

impossible to predict and are beyond our control, we cannot assure you that

we will achieve or accomplish these expectations, beliefs or projections.

    In addition to these important factors, other important factors that,

in our view, could cause actual results to differ materially from those

discussed in the forward-looking statements include possible shareholder

objections to the settlement of the class action, possible shareholder opt

outs from the settlement, possible disapproval of the Court of the

settlement, possible shareholder class appeals of the settlement and

adverse outcomes on appeal, general market conditions, including

fluctuations in charter rates and vessel values, changes in the demand for

our vessels, potential liability from pending or future litigation, general

domestic and international political conditions, and other factors. Please

see our filings with the Securities and Exchange Commission for a more

complete discussion of these and other risks and uncertainties.

Contact: Michael Mason (investors) Stamatis Tsantanis, CFO Allen & Caron Inc TOP Ships Inc. 212 691 8087 011 30 210 812 8199

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