US Shipping Partners LP (fka USSPQ)

[ScovilleUnits]

Another 10 day extenstion… 8-K

http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6130200

Effective as of February 9, 2009, the Partnership and its lenders amended:

• the Waiver and Fourth Amendment to Third Amended and Restated Credit Agreement, dated as of October 20, 2008, to extend the lenders’ waiver of any potential defaults under the financial covenants in the Partnership’s senior credit agreement for the quarters ended September 30, 2008 and December 31, 2008 through the earlier of (i) February 20, 2009 and (ii) the date on which the Partnership makes an interest payment in respect of its senior notes; and

• the Forbearance Agreement entered into with holders of a majority-in-interest of the outstanding loans under the senior credit agreement on December 30, 2008 to extend the termination date to the earliest to occur of (i) 5:00 p.m. (Eastern time) on February 20, 2009; (ii) the date on which the Partnership makes an interest payment in respect of its senior notes; (iii) the occurrence and continuance of any event of default other than the Partnership’s failure to make the December 31, 2008 principal and interest payments under the senior credit facility; and (iv) the failure by the Partnership to comply with any of the provisions of the Forbearance Agreement.

Prior to this extension the waiver and the Forbearance Agreement were to expire on February 10, 2009.

In accordance with the terms of the Forbearance Agreement, the Partnership is currently engaged in good faith negotiations with the administrative agent and the lenders regarding restructuring and strategic alternatives. There can be no assurance that the Partnership’s negotiations with the lenders will be successful, or that the lenders will not declare all outstanding obligations under the senior credit agreement to be immediately due and payable and pursue their rights and remedies under the senior credit agreement upon termination of the Forbearance Agreement on February 20, 2009.