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this is the tricky part - Under the terms of the Plan, the Lenders will convert their debt into 99.5% of the new equity in the reorganized Eagle Bulk, subject to dilution, and receive a cash distribution from the proceeds of an exit financing facility. All existing equity interests in Eagle Bulk will be cancelled, with such equity interests receiving, subject to dilution, 0.5% of the 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.
not sure how that will effect common
Trading today seems to mirror that fact. little bounce going on.
Company Executes Restructuring Support Agreement and Files Prepackaged Plan of Reorganization for Parent with Overwhelming Lender Support --
-- Operating and Management Subsidiaries Excluded from Filing; All Business Activities Continue in the Normal Course --
-- Plan Expected to Reduce Total Debt by Approximately $975 Million and Provides Payment in Full for Trade Creditors --
-- Company Secures up to $50M in DIP Financing --
NEW YORK, Aug. 6, 2014 /PRNewswire/ -- Eagle Bulk Shipping Inc. (Nasdaq: EGLE) ("Eagle Bulk" or "the Company") today announced that it has entered into a Restructuring Support Agreement ("RSA") with lenders (the "Lenders") holding more than 85% of the loans outstanding under its Fourth Amended and Restated Credit Agreement, dated June 20, 2012 (the "Credit Agreement"), regarding the terms of a balance sheet restructuring that will strengthen Eagle Bulk's financial position, reduce its debt obligations by approximately $975 million, and significantly enhance liquidity.
To implement the restructuring, Eagle Bulk, the parent company, has commenced a voluntary "prepackaged" chapter 11 case in the United States Bankruptcy Court for the Southern District of New York (the "Court"). The prepackaged case, which excludes all of the Company's operating and management subsidiaries, is intended to facilitate a prompt exit from the financial restructuring process without disruption to Eagle Bulk's business.
In conjunction with the prepackaged case, Eagle Bulk also filed its proposed plan of reorganization (the "Plan") and related disclosure statement. The Company has already received affirmative votes for the Plan from Lenders holding more than 85% of the loans outstanding under its Credit Agreement, constituting more than two-thirds of the total Lenders thereunder, amounts sufficient under applicable law for the Court to confirm the Plan.
Eagle Bulk has also obtained a commitment for up to $50 million of debtor-in-possession ("DIP") financing from certain of its Lenders which, subject to Court approval, will significantly enhance liquidity.
During the process, Eagle Bulk intends to continue normal day-to-day operations, including:
Honoring all customer arrangements in the ordinary course of business;
Payment of amounts owed to the Company's vendors, suppliers, and business partners; and,
Uninterrupted payment of wages, salaries, and other compensation to the Company's crew, employees, and independent contractors.
Eagle Bulk's management will remain in place and Sophocles N. Zoullas will remain Chairman and Chief Executive Officer of the reorganized Eagle Bulk.
"With an expedited restructuring process now underway, we are pleased to have the ongoing support of our Lenders, with whom we will work in partnership to recapitalize Eagle Bulk's balance sheet and significantly reduce the Company's debt load," Mr. Zoullas commented. "We continue to benefit from a world-class, highly-efficient and versatile fleet, and a deep and experienced management team. Upon emergence from the process, we will continue to build on these competitive advantages and further grow our leadership position in the dry bulk market. We are grateful for the strong support from our Lenders, and look forward to the emergence of an Eagle Bulk that is well-positioned for many years of success."
Mr. Zoullas concluded, "We expect our business activities to continue in the normal course during the restructuring process. The Company's reputation has been built on superior industry relationships and operational excellence – attributes that we will build on moving forward."
Under the terms of the Plan, the Lenders will convert their debt into 99.5% of the new equity in the reorganized Eagle Bulk, subject to dilution, and receive a cash distribution from the proceeds of an exit financing facility. All existing equity interests in Eagle Bulk will be cancelled, with such equity interests receiving, subject to dilution, 0.5% of the 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.
To further ensure that its suppliers, chartering counterparties, business partners, crew members, and employees are unaffected by the restructuring process, Eagle Bulk is seeking customary "first day" motions with the Court to authorize continued payments in the ordinary course of business.
Court documents and other information for the Company's stakeholders are available on a dedicated website administered by Eagle Bulk's noticing agent, Kurtzman Carson Consultants, at www.eaglebulkrestructuring.com, or by calling 877-709-4746 (424-236-7227 for international calls). Inquiries may also be emailed to: eaglebulkinfo@kccllc.com.
Eagle Bulk's legal advisor is Milbank, Tweed, Hadley & McCloy LLP, its financial advisor is Moelis & Company, and its restructuring advisor is Alvarez & Marsal.
About Eagle Bulk Shipping Inc.
Eagle Bulk Shipping Inc. is a Marshall Islands corporation headquartered in New York. The Company is a leading global owner of Supramax dry bulk vessels that range in size from 50,000 to 60,000 deadweight tons and transport a broad range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes.
The Genco bankruptcy pretty much explains it. Glta, I hope it works out.
I am hurting real bad ... Does anyone know what's going on ? What's causing the fall ...
The shipping industry runs on tight margins and things are not good for the sector, especially for the smaller operators. I've not looked into this company that much but it's financial stability is very questionable based on the financials.
I'm not sure why the decline but this seems to be a very volatile stock for it just could be daytrading going on but it does seem to be basing lower and lower which is not good.
Not sure either. Searched everywhere for news, nothing. Probably it got leaked somewhere. Maybe after hours we will know
Why is this tanking bro?? Im hurting bad
Are you still in ??
Might pull back a little again but we will be mid $2's soon enough
What's next ?
Here we go....
Why so ? Any news coming soon ?
This things either going to tank hard or rise back to the upper $2's. Tick tock...
Got in 2k shares at $1.69. Looks oversold. Fingers crossed for a bounce
Oversold at this point. I am expecting a bounce today. Need to load up at the bell
Should be! 90% will bounce today!
Do you think it has hit the bottom???
Right about now!!! Don't miss this train!!,lol. Use your judgement. Got in at $1.85 though.
Yah, read the article.. this EAGLE has finally grounded .. for good. Wouldn't touch it except for a very quick flip.
Volume Price action seems unusual.
It kind of looks like there wasn't many sellers and the move was a bit of a take down.
The fact that the stock seems a bit weak and the market as a whole seems toppy, and yesterday's Seeking Alpha article was quite bearish, the stock seemed primed for today's move.
Bottomed out yet ?
Up 11% AH on creditor news! Big short squeeze tomorrow?
According to latest news, after they filed for 10-k form. EAGLE has been rated as a "sell"
Very strange trading in EGLE in the final few minutes each day lately.
Bought everything I could get my hands on and we're all in...
Let's see how well EGLE can spread her wings, and see just how high she can fly...
Let's go EGLE!!!
I'm planning on sending a letter to the SEC regarding the Bk news
Thanks! Same to you too...
I posted on the $DCM message board regarding closing out my EGLE position today for a $15K loss. I've been down this road on other BK play's and it was time for me to fold...need to keep chips for another play.
Good-luck on your bulk-shipping play
Authorities need to look at these "key creditors" actions. Was Pimco involved possibly as they are sccam artists in my book and I still remember what they did tot CIT stockholders/bondholders then too after promising NEVER tos ell the debt they controlled...
Just 3 days ago Baltic trading was saying how their GNK stock appreciated 40% in portfolio amongst other holdings too.. And others came forward sayign they initiated coverage fo GNK stock from here.. Now this premarket to EGLE & GNK...?? Something very fishy...
Eagle Bulk Shipping, Genco Shipping Working With Advisers To Pare Debt
Shipping Companies Enlist Restructuring Advisers After Creditors Sold Large Blocks of Debt
Two shipping companies have enlisted restructuring advisers after key creditors sold large blocks of debt to distressed investors amid balance sheet concerns.
Battered by rough seas in the industry over the past couple of years, New York based dry-bulk shippers Eagle Bulk Shipping Inc. EGLE -7.53% and Genco Shipping & Trading Ltd. GNK -4.63% are working with advisers to pare down their debts, according to people familiar with the matter.
Eagle Bulk, with a debt load of about $1.2 billion, tapped restructuring advisers at investment bank Moelis & Co. and law firm Milbank, Tweed, Hadley & McCloy LLP within the past few days.
The hirings come about a month after Royal Bank of Scotland Group RBS +0.73% PLC sold its roughly $800 million debt position in Eagle Bulk at close to 90 cents on the dollar, people familiar with the transaction said, adding that investment firms Oaktree Capital Management, Centerbridge Partners LP and Canyon Partners LLC bought the majority of the debt.
It is unusual for investment firms to buy debt of distressed companies at such high prices, these people added, but a lack of activity in the distressed market could be a catalyst. Distressed investors are known for buying debt at very discounted rates, sometimes as low as pennies on the dollar and up to around 75 cents on the dollar.
Many shipping companies borrowed to grow their fleets when shipping activity peaked in 2008. They are now struggling to make loan payments since the rates they charge to transport goods have fallen, though there has been some pickup more recently. The shares of both Eagle Bulk and Genco have fallen dramatically in recent years, and they currently have market values of about $60 million and $110 million, respectively.
Though it is still early days, people familiar with the matter say an Eagle Bulk bankruptcy protection filing in early 2014 is a possibility, in particular a so-called prepackaged plan.
Genco, another vessel owner with around $1.5 billion of debt, has enlisted restructuring lawyers at Kramer Levin Naftalis & Frankel LLP and interviewed restructuring bankers weeks ago, these people said. It faces an amortization period on its term loan in early 2014 and may not have enough cash to make the payment, they said.
Roughly three weeks ago, Norwegian bank DNB AS DNB.OS +0.58% A sold around $600 million of Genco debt, also close to 90 cents on the dollar, these people said. Centerbridge was one of several investment firms that purchased the debt, some of these people said.
A DNB spokesman confirmed the bank sold its full Genco exposure but declined to comment on price or buyers. "This was a very large commitment for DNB given the long term challenges within the dry bulk market," the spokesman wrote in an emailed statement. "When the offer was on the table we could not let this opportunity pass."
Eagle Bulk, which owns 45 vessels built between 1997 and 2011, mostly focuses on "Supramax" vessels, large dry bulkers that typically transport coal, steel or ingredients like grain, sand and gravel. Vessel names include Thrush (2011), Crowned Eagle (2008) and Condor (2001), according to Eagle Bulk's website.
Genco, meanwhile, has a mixed fleet of dry-bulk carriers, ranging from smaller "Handysize" to larger "Capesize" vessels.
The average daily charter rates of Supramax vessels to transport goods has grown to nearly $16,000 per day, a level many hadn't seen since 2011, according to data from shipping service provider Clarksons reviewed by The Wall Street Journal. It dropped as low as roughly $7,000 earlier this year and had been hovering between $7,500 and $10,000 up until the fall, according to the data. In 2007, the rate peaked at $70,000, according to the data.
"The market as of late has improved tremendously," said Svein Engh, a managing director at lender CIT Group Inc.'s maritime finance unit. "The one thing a lot of people aren't certain about is whether this is sustainable improvement or just a seasonable blip again."
Shipping companies have been struggling over the last couple of years.
In July, Excel Maritime Carriers Ltd. EXMCQ -2.56% filed for bankruptcy protection with a plan to hand itself over to a syndicate of top secured lenders led by Oaktree.
A month earlier, the bulk-transportation unit of STX Group, STX Pan Ocean Co., filed for court receivership in South Korea, similar to a U.S. Chapter 11 bankruptcy-protection filing. The June filing was due in part to STX Group's failure to sell the unit amid a prolonged slump in the industry.
Overseas Shipholding OSGIQ -2.49% Group Inc., one of the largest publicly traded tanker owners, filed for bankruptcy in November 2012, sinking from a massive debt load and a big tax hit.
In November 2011, oil-tanker operator General Maritime Corp. filed for Chapter 11 bankruptcy protection in efforts to slash its debt and boost its liquidity. It emerged in May 2012.
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Fly like an EGLE. What was the price when I called? Oh yes under $3
http://finance.yahoo.com/q/hp?s=EGLE&a=10&b=22&c=2013&d=10&e=29&f=2013&g=d
Prices
Date
Open
High
Low
Close
Volume
Adj Close*
Nov 27, 2013
3.55
3.73
3.50
3.72
951,300
3.72
Nov 26, 2013
3.51
3.56
3.40
3.48
898,400
3.48
Nov 25, 2013
3.30
3.52
3.15
3.52
1,537,200
3.52
Nov 22, 2013
2.80
3.34
2.76
3.28
2,590,500
3.28
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This board's subject is fundamental and technical discussion about Eagle Bulk Shipping Inc., EGLE.
Eagle Bulk Shipping Inc. is a holding company. Through its subsidiaries, the Company is engaged primarily in the ocean transportation of a range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes. As of December 31, 2006, Eagle Bulk Shipping Inc. owned and operated a fleet of 16 oceangoing vessels with a combined carrying capacity of 796,663 deadweight tons. The Company carries out the commercial management of its fleet through its wholly owned subsidiary, Eagle Shipping International (USA) LLC. Eagle Bulk Shipping Inc. expanded its fleet from 13 vessels to 16 vessels by acquiring the KESTREL I, TERN and JAEGER in June and July 2006, respectively. In August 2007, Eagle Bulk Shipping Inc. announced that it has completed the fleet acquisition from the parent of Anemi Maritime Services, a private Greek shipping company.
477 Madison Avenue
New York, NY 10022
(212) 785-2500
http://www.eagleships.com/
Eagle Bulk Shipping Inc. Reports Fourth Quarter and Fiscal Year 2008 Results
http://www.eagleships.com/phoenix.zhtml?c=189576&p=irol-newsArticle&ID=1261693&highlight=
http://finance.yahoo.com/news/Eagle-Bulk-Shipping-Inc-to-pz-15054442.html
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Best DD for all Dry bulk carriers can be found in the Dryships IBOX by Eastunder
http://investorshub.advfn.com/boards/board.aspx?board_id=10556
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