US Shipping Partners LP (fka USSPQ)

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U.S. Shipping Partners Senior Secured Noteholders Represented by Bracewell & Giuliani LLP
02/26 3:41 am (PR)



Waive Interest Payments NEW YORK--(BUSINESS WIRE)--February 26, 2009--
In its Form 8-K filed on February 12, 2009, U.S. Shipping Partners L.P. ("USSP"; ticker USSPZ:US) announced that it was in good faith negotiations with the administrative agent (the "Agent") and the lenders (the "Lenders") under its Third Amended and Restated Credit Agreement dated as of October 20, 2008 (the "Credit Agreement") regarding restructuring and strategy alternatives. In its Form 8-K filed on February 17, 2009, USSP announced that it did not make the $6.5 million interest payment due on February 15, 2009 in respect of its 13% senior secured notes due 2014 (the "Notes"; ticker USS.GB; CUSIP 903414AB6). In order to facilitate USSP's negotiations with the Agent and the Lenders, and discussions with representatives of the holders of the Notes, the holders of 91.29% of the Notes (and potentially more over the next several days) executed and delivered directly to USSP and the Agent a letter waiving their February 15 interest payments and all subsequent interest payments until the earlier to occur of (i) 6 months after the payment in full of all amounts owing in respect of the Credit Agreement and (ii) the occurrence of an insolvency event. A copy of the form of waiver letter accompanies this release.

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CONTACT: Bracewell & Giuliani LLP


Evan Flaschen,
860-256-8537
[e-mail]

SOURCE: Bracewell & Giuliani LLP Copyright Business Wire 2009

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