zoomImage Courtesy: Eagle Bulk

US-based operator of dry bulk cargo vessels Eagle Bulk Shipping has reached an agreement with its lenders to extend the forbearance period to a previously signed loan agreement.

The company was given additional breathing space until February 23, 2016 having paid USD 3.9 million to its lenders that had been due on 15 January.

In January, Eagle Bulk Shipping said that it had entered into a forbearance and standstill agreement with its lenders to delay any action after the company failed to make a scheduled loan repayment on January 15, 2016.

The company was given until February 2 to figure out a solution with its lenders, namely, ABN AMRO and others.

As of then, Eagle Bulk Shipping was in discussions with its shareholders and lenders to evaluate potential financing alternatives to enhance its liquidity, with the objective of reaching agreement by the end of the forbearance period.

“The extension of the forbearance period and the amendment to the minimum liquidity covenant is intended to provide the company with additional time and liquidity while discussions with certain of its shareholders and lenders with respect to such financing alternatives are continuing,” the company said.

However, the company could give no assurance on whether it would reach any agreement with any of its shareholders or lenders to structure any potential financing by the end of the extended forbearance period, if at all.