Replies to post #28104 on Newlead Holdings Ltd. (fka NEWLF)

[$tock Rev]

Time to convert my shares into paper shares and frame them then ! Most expensive painting I have bought then obviously!

[jimw2]

AND,

Over the past three years, we have experienced net losses, negative operating cash flows, working capital deficiencies, negative operating cash flow and shareholders’ deficiency, which has affected, and which is expected to continue to affect, our ability to satisfy our obligations. In addition, we are in default under various debt obligations which are currently due on demand. Charter rates for bulkers have experienced a high degree of volatility and continue to be distressed. To date, we have also been unable to generate sustainable positive cash flows from operating activities. For the year ended December 31, 2013, our loss from continuing operations was $146.8 million. As of December 31, 2013, our cash and cash equivalents were $2.3 million and current liabilities of $291.7 million were payable within the next twelve months.



The above conditions raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should we are unable to continue as a going concern.

[jimw2]

And,

Our existence is dependent upon our ability to obtain necessary financing, which we are currently in the process of attempting to secure. We believe that our existing cash resources, combined with projected cash flows from operations, will not be sufficient to execute our business plan and continue operations for the next twelve months without additional funding. We intend to continue to explore various strategic alternatives, including the sale of equity or debt to raise additional capital. Management is also actively taking steps to increase future revenues and reduce our future operating expenses. However, we cannot provide any assurance that operating results will generate sufficient cash flow to meet our working capital needs or that we will be able to raise additional capital as needed.



If all of our indebtedness was accelerated as a result of our current events of default, we may not have sufficient funds at the time of acceleration to repay most of our indebtedness and we may not be able to find additional or alternative financing to refinance any such accelerated obligations on terms acceptable to us or on any terms, which could have a material adverse effect on our ability to continue as a going concern.

Sounds Like a WARNING Of Upcoming Bankruptcy IMO

[jimw2]

And,

As of December 31, 2013, our outstanding indebtedness was $234.6 million. Despite our restructuring efforts, as of May 8, 2014, we continue to have a substantial amount of indebtedness amounting to approximately $159.9 million, excluding the BCF of the 7% Notes (excluding the share settled debt and redeemable preference shares with Ironridge Global IV, Ltd).



Although it is likely that any agreements governing our future indebtedness, including the terms of any indebtedness remaining outstanding as a result of the restructuring, will contain limitations on our ability to incur indebtedness, the covenants in such debt agreements typically contain a number of exceptions. As such, we may still be able to incur a significant amount of additional indebtedness. Our high level of indebtedness could have important consequences to our shareholders.



As discussed elsewhere in this annual report, we are currently unable to meet certain of our debt service requirements and our indebtedness remains significant. In addition, subsequent to the restructuring, our owned fleet consists of two dry bulk vessels and, as a result, we now have significantly fewer vessels from which we will be able to generate revenue. Furthermore, although we have entered into new business arrangements for the purchase and trading of coal, these business arrangements remain subject to significant risks and we have not yet commenced operations. See “Risks Relating to Our Coal Business” below. Since our relative leverage continues to remain high after our restructuring, and since we have a diminished basis from which we can generate revenue, and since our recent coal mining acquisitions have not yet fully commenced operations, there is no assurance we will be able to service our significant indebtedness.



Because we are highly leveraged, we will continue to remain subject to the following risks:


• our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, vessel or other acquisitions or general corporate purposes may be impaired in the future;


• if new debt is added to our debt levels, the related risks that we now face would increase and we may not be able to meet all of our debt obligations;


• a substantial portion of our cash flow from operations must be dedicated to the payment of principal and interest on our indebtedness, thereby reducing the funds available to us for other purposes, and there can be no assurance that our operations will generate sufficient cash flow to service this indebtedness;


• we will be exposed to the risk of increased interest rates because our borrowings under facility agreements will be at variable rates of interest;


6



• it may be more difficult for us to satisfy our obligations to our lenders, resulting in possible defaults on and acceleration of such indebtedness and the cross-acceleration or cross-default of our other indebtedness;


• we may be more vulnerable to general adverse economic and industry conditions;


• we may be at a competitive disadvantage compared to our competitors with less debt or comparable debt at more favorable interest rates;


• our ability to refinance indebtedness may be limited or the associated costs may increase; and


• our flexibility to adjust to changing market conditions and ability to withstand competitive pressures could be limited, or we may be prevented from carrying out capital spending that is necessary or important to our growth strategy and efforts to improve operating margins or our business.



Highly leveraged companies are significantly more vulnerable to unanticipated downturns and setbacks, whether directly related to their business or flowing from a general economic or industry condition, and therefore are more vulnerable to a business failure or bankruptcy. Accordingly, it also heightens the risk of owning our securities.



The market values of our vessels and the related charters, if applicable, have declined and may further decrease, which could lead to the loss of our vessels and/or we may incur a loss if we sell vessels following a decline in their market value.

[jimw2]

And,NO CLASS ACTION LAWSUIT.....

Our incorporation under the laws of Bermuda may limit the ability of our shareholders to protect their interests.



We are a Bermuda company. Our memorandum of association and bye-laws and the Bermuda Companies Act of 1981, as amended (the “BCA”), govern our corporate affairs. Investors may have more difficulty in protecting their interests in the face of actions by management, directors or controlling shareholders than would shareholders of a corporation incorporated in a United States jurisdiction. Under Bermuda law, a director generally owes a fiduciary duty only to the company, not to the company’s shareholders. Our shareholders may not have a direct cause of action against our directors. In addition, Bermuda law does not provide a mechanism for our shareholders to bring a class action lawsuit. Further, our bye-laws provide for the indemnification of our directors or officers against any liability arising out of any act or omission, except for an act or omission constituting fraud or dishonesty. There is a statutory remedy under Section 111 of the BCA, which provides that a shareholder may seek redress in the courts as long as such shareholder can establish that our affairs are being conducted, or have been conducted, in a manner oppressive or prejudicial to the interests of some of our shareholders, including such shareholder.

[blanka]

So down we go then Yank?