Tomahawk, WI 06/05/2014 (Basicsmedia) – FreeSeas Inc (NASDA:FREE) had amassed $3.6 million during the first quarter, this year as they sold off the M/V Free Knight, a dry bulk carrier built in 1998, as a commonplace asset reorganization to solicit a balance sheet clean-up! The financial gains were put to the hush away a certain amount of debts during Q1.

An Agreement With Dawson-James Fosters Quicker Debt Cleanup

Last month, FreeSeas Inc (NASDA:FREE) announced the completion of the Series D Convertible Stock and myriad Series C Warrant offerings at a whopping $25 million. The company had entered into a placement-agent agreement on May 21, 2014 with Dawson James Securities, Inc to sell off the securities. A stock of 250,000 units of securities was sold off at a net purchase price per unit of $100. Each of such units comprised one Series D Convertible-Preferred-Stock share and another 184 Series-C Warrants.

Each warrant can be exercised in the subsequent 5 year period at $1.42 per share. Every Series D stock has a value of $100, and can be converted into any number of the common stock shares; each share shall bear the price of $1.09, as per the share price during the date of sale.

Credit Suisse’s Outstanding $22.6 M Debts Relieved!

A couple of days later, on May 30, 2014, FreeSeas Inc (NASDA:FREE) quenched a debt of $22.6 million that the former owed to Credit Suisse. Eventually, this transaction helped in settling a whopping $37.6 million debts that FREE owed to Credit Suisse. Consequently, FREE has also benefited in obtaining a rewarding $15 million, as debt forgiveness!

FREE Bags $35M For Debt Cancellation

The closure of the Credit Suisse debt chapter has left FREE with a trimmed outstanding debt of $23.2 million, reducing from $59.7 million, till date! Not quite long ago, FREE had suffered from a humongous debt of $90 million; however, this margin currently stands curtailed through favorable debt forgiveness. With this latest inclusion of the $15 million debt forgiveness from Credit Suisse, FREE has garnered $35 million, in totality, as debt forgiveness from its lenders.

Assets Freed

By paying off Credit Suisse’s debt, the company has freed its pack of 6 vessels and other properties which were held at the disposal of Credit Suisse. Further, FreeSeas Inc (NASDA:FREE) expects to obtain sumptuous non cash gain, after notching up the $15 million forgiveness of debts!

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