Eagle Bulk again extends milestone date for lender waiver agreement

By Toni Weeks

San Luis Obispo, Calif., April 30 - Eagle Bulk Shipping Inc. again amended its waiver agreement with some lenders on Wednesday.

The second amendment will allow continued discussions between the company and the lenders under its fourth amended and restated credit facility, according to a press release.

The amendment extends to May 15 from April 30 the milestone requiring the company and the majority lenders under the credit agreement to agree on terms of a restructuring of the obligations outstanding under the credit agreement and to execute a binding restructuring support agreement or similar agreement documenting the agreed-upon terms. The deadline was previously extended to April 30 from April 15, as already reported.

Under the terms of the waiver, the lenders agreed to waive until June 30 any potential events of default related to the company's non-compliance with the leverage ratio or minimum interest coverage ratio covenants under the credit agreement.

The company entered into a waiver and forbearance agreement with some lenders under its fourth amended and restated credit facility, effective March 19.

Eagle Bulk previously said that while it is continuing discussions with its lenders as part of the waiver, there is no assurance these discussions will result in a comprehensive resolution.

Eagle Bulk is a Marshall Islands corporation based in New York. The company owns dry bulk vessels and transports major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.