Transportation and Logistics Systems Inc (TLSS)

[davidsson10]

Transportation and Logistics Systems, Inc. Agrees to Payment Terms on $2.0 Million Accrued Liability

June 09, 2020 08:00 ET | Source: Transportation and Logistics Systems, Inc.

Payments to be Amortized Over 2½ Years

JUPITER, FLORIDA, June 09, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Transportation and Logistics Systems, Inc. (OTC:TLSS), (“TLSS", or the “Company”), a leading eCommerce fulfillment service provider, announced today that it has come to terms on a material accrued liability with two (2) related creditors (“Creditors”) of Prime EFS, LLC (“Prime EFS”), one of the Company’s wholly-owned subsidiaries, to convert past due and outstanding balances of $2,038,556 (the “Outstanding Balance”) to a long-term unsecured note (the “Settlement Agreement”).

Sebastian Giordano, CEO of Ascentaur LLC, which the Company engaged in February 2020 as its restructuring consultant, and who negotiated the payment arrangement, stated, “As the Company continues to make progress with its restructuring plan, this agreement provides the Company with the opportunity to satisfy this obligation without interest, over what it believes is a manageable payment structure stretched out for just under two and one-half (2½) years from June 2020 through November 2022.”

Pursuant to the Settlement Agreement, Prime EFS made a payment of $75,000 to the Creditors on June 5, 2020 and must make a second payment of $75,000 to the Creditors on or before June 12, 2020. Thereafter, beginning on June 19, 2020, Prime EFS will make weekly payments of $15,000 to the Creditors each Friday for 125 weeks ending with a final payment of $13,556 on November 18, 2022 at which time the Outstanding Balance will be paid in full. Prime EFS is permitted to prepay the Outstanding Balance at any time without penalty.