Eagle Cleared for Restructuring

Previously, Eagle Bulk Shipping Inc. entered into a Restructuring Support Agreement (RSA) with lenders holding more than 85% of the loans outstanding under its Fourth Amended and Restated Credit Agreement, dated June 20, 2012, regarding the terms of a balance sheet restructuring that will reduce its debt obligations by approximately USD 975 million.
In conjunction with the prepackaged case, Eagle Bulk also filed its proposed plan of reorganization and related disclosure statement.
The approved restructuring plans clears USD 975 million of debt, with the holders of Eagle Bulks credit facilities being given restructured owners 99.5% of the common shares.
The remaining 0.5% goes to the existing equity holders, with the option of warrants that could raise their stake to 7.5%.
The plan was unanimously supported by Eagles USD 1.2 billion facilities lenders.
“The plan was negotiated and proposed by the debtor in good faith and with a legitimate and honest purpose of effectuating a full and feasible financial restructuring of the debtor’s enterprise while maximising value for the benefit of all stakeholders,” said Adir Katzav, Eagle Bulk  Chief Financial Officer.