Eagle Ready for Takeoff

Eagle Ready for Takeoff

Nasdaq-listed Eagle Bulk Shipping Inc., has completed its court-approved financial restructuring, the company disclosed in a release issued on Wednesday, October 15.

Sophocles N. Zoullas, Eagle Bulk Chairman and Chief Executive Officer,said: “We are very pleased to have concluded our balance sheet restructuring, which has placed the company in a far stronger position to compete in the cyclical shipping markets.

Eagle Bulk is grateful to our lenders for their strong support in achieving this transformational result on an expedited timeframe, and also to our customers and vendors who supported us during the process. The Company’s employees and crew have also worked tirelessly to ensure Eagle Bulk remains the premier Supramax owner/operator in the world.”

The financial restructuring process has enabled Eagle Bulk to reduce its debt obligations by 80%, or approximately USD 1 billion, as well as lower its annual cash interest expense and enhance liquidity, the release says.

In conjunction with its emergence from the financial restructuring process, Eagle Bulk has also closed on a new USD 275 million exit financing facility, comprised of a USD 225 million term loan and a USD 50 million revolving credit facility.

On September 22, 2014, the United States Bankruptcy Court for the Southern District of New York confirmed Eagle Bulk’s Plan of Reorganization, which received the unanimous support of Eagle Bulk’s secured lenders. Under the terms of the plan, the Lenders converted their debt into 99.5% of the new equity in the reorganized Eagle Bulk, and received a cash distribution from the proceeds of the exit financing facility.

Also, in accordance with the plan, all existing equity interests in Eagle Bulk have been cancelled, with such equity interests receiving, subject to dilution, 0.5% of new equity in the reorganized Eagle Bulk and seven-year warrants to acquire an additional 7.5% of the new equity in the reorganized Eagle Bulk.

Press Release

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