Eagle Bulk Strikes Long-Awaited Deal with Creditors

Marshall Islands-registered owner of Supramax dry bulk vessels Eagle Bulk Shipping has reached an agreement with its lenders and holders of approximately 75% of the company’s outstanding equity for a comprehensive balance-sheet recapitalization.

The deal comes after a number of delays and extensions of the forbearance period on its loan which was due to be paid in January, 2016.

The transaction provides Eagle Bulk with approximately USD 105 million in incremental liquidity, which includes a new second lien facility comprised of USD 60 million in new capital from existing shareholders, as well as new capital providers.

“The combination of additional liquidity and the enhanced financial flexibility it provides greatly improves our ability to persevere through the current market, and a new corporate structure will enable us to pursue market opportunities,” the company’s Chief Executive Officer Gary Vogel said.

Under the terms of the transaction, Eagle Bulk will benefit from additional incremental liquidity through a USD 14 million reduction in its first lien minimum liquidity requirement, a deferral of more than USD 31 million in amortization payments through 2018, and renewed, full access to its USD 50 million revolver.

The transaction also includes changes to Eagle Bulk’s organizational structure, which the company claims will allow it to “pursue growth opportunities in the dry bulk market.”

Eagle Bulk further plans to issue shares equal to or more than 20% of its outstanding shares, increase the amount of authorized shares, and effect a reverse stock split.

Earlier this month, the company said that it expects to report a full-year operating loss of approximately USD 84 million, further deepening the loss of USD 51.6 million it posted for the corresponding period in 2014.

With regard to revenue expectations, the company anticipates to report USD 102 million in revenue for the year ended December 31, 2015, down from USD 154.3 million from the previous year.

The decrease in revenues and increase in operating losses were primarily attributed to lower charter rates earned by its fleet in 2015.

 

 

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

Maritime Reconnaissance and Surveillance Technology

As varied threats in the Mediterranean Sea continue to proliferate, the need to advance…

read more >

CrewConnect Global 2019

CrewConnect Global is the leading forum for collaboration to advance new industry approaches to seafarer recruitment and training.

read more >

CruiseConnect Global 2019

Attend CrewConnect Global and stay on for the CruiseConnect Summit to take part in an industry-wide conversation focused…

read more >

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening will be returning to Rome in 2019 to celebrate it’s 20th year.

read more >