Report of Foreign Issuer (6-k)
September 24 2014 - 8:50AM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of September 2014
Commission File Number: 000-51672
FREESEAS INC.
(Name of Registrant)
10, Eleftheriou Venizelou Street (Panepistimiou
Ave.), 106 71, Athens, Greece
(Address of principal
executive office)
Indicate
by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F x
Form 40-F ¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
FREESEAS INC.
EXHIBITS
Exhibit
Number
|
Description |
|
|
99.1 |
Press Release, dated September 24, 2014, issued by FreeSeas Inc. |
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
|
FREESEAS INC. |
|
|
Date: September
24, 2014 |
|
By: /s/ DIMITRIS
PAPADOPOULOS |
|
|
Dimitris Papadopoulos Chief Financial
Officer |
Exhibit 99.1
FreeSeas Concludes Sale of Vessel
- Reduces Bank Debt
ATHENS,
Greece, September 24, 2014 (GLOBE NEWSWIRE) -- FreeSeas Inc. (Nasdaq: FREE) ("FreeSeas" or the "Company"),
a transporter of dry-bulk cargoes through the ownership and operation of a fleet of Handysize and Handymax vessels, announced today
that it has sold to unrelated third parties the M/V ‘Free Impala’, a
1997-built, 24,111 dwt Handysize dry bulk carrier for a sale price of $3.6 million.
Substantially all the proceeds have been
used to reduce outstanding indebtedness with the National Bank of Greece (NBG), which had a mortgage on the vessel.
Mr.
Ion Varouxakis, the Company's Chairman, President and CEO stated, “We are pleased to announce the sale of the only laid-up
vessel of our fleet in order to reduce outstanding indebtedness. Today’s transaction is one more step in the direction of
the Company’s plan to reduce bank debt and increase operational leverage. We aspire to keep reducing outstanding bank debt
and to capitalize on NBG’s offer to forgive approximately $4.7 million of debt against repayment of $22 million, while creating
the conditions for the acquisition of additional vessels in order to increase our income and earnings.” Mr.
Varouxakis added: “Today’s payment of $3.3 million, in conjunction with the payment of a further $2.7 million a few
days ago, brings total payments to $6 million. NBG is our last outstanding lender, and the latest payments bring the conditions
for the offered debt forgiveness much closer to fruition, which would extinguish our bank debt. This is a marked improvement compared
to $90 million of outstanding bank debt less than a year ago.”
About FreeSeas Inc.
FreeSeas Inc. is a Marshall Islands corporation
with principal offices in Athens, Greece. FreeSeas is engaged in the transportation of drybulk cargoes through the ownership and
operation of drybulk carriers. Currently, it has a fleet of Handysize and Handymax vessels. FreeSeas' common stock trades on the
NASDAQ Capital Market under the symbol FREE. Risks and uncertainties are described in reports filed by FreeSeas Inc. with the U.S.
Securities and Exchange Commission, which can be obtained free of charge on the SEC's website at http://www.sec.gov. For more information
about FreeSeas Inc., please visit the corporate website, www.freeseas.gr.
Forward-Looking Statements
This
press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth strategy and measures
to implement such strategy. Words such as “expects,” “intends,”
“plans,” “believes,”
“anticipates,” “hopes,”
“estimates” and
variations of such words and similar expressions are intended to identify forward-looking statements. Although the Company believes
that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations
will prove to be correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates
which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company.
Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause
actual results to differ materially include, but are not limited to, changes in the demand for dry bulk vessels; competitive factors
in the market in which the Company operates; risks associated with operations outside the United States; and other factors listed
from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligation
or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change
in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement
is based.
Contact Information:
At the Company
FreeSeas Inc.
Dimitris Papadopoulos, Chief Financial
Officer
011-30-210-45-28-770
Fax: 011-30-210-429-10-10
dp@freeseas.gr
www.freeseas.gr
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