Friday, February 10, 2012

A Company which is going through a restructuring process has to provide forward-looking statements and information that are based on one management's beliefs. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot provide any assurance that those expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including, among other matters:
  • The effects of severe and rapid declines in industry conditions that have required the Company to restructure its outstanding indebtedness,
  • the ability to manage and repay its substantial indebtedness,
  • the ability to maintain financial ratios and comply with the financial covenants in its credit facilities,
  • the ability to continue to operate as a going concern,
  • the ability to effectively operate its business and manage its growth while complying with operating covenants in its credit facilities,
  • the ability to generate the significant amounts of cash necessary to service its debt obligations,
  • the very high volatility in the Company's revenues and costs, including volatility caused by increasing oil prices,
  • excess supplies of vessels in all classes and the resulting heavy pressure on freight rates,
  • the Company's vessels exceeding their economic useful lives and the risk associated with operating older vessels,
  • the Company's ability to grow its vessel fleet and effectively manage its growth,
  • impairments of the Company's long-lived assets, and  
  • compliance with both new and existing environmental laws and regulations 

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