Eagle Bulk Shipping Inc (EGLE)

[sman154]

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: [e-mail].

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.

[dshade]

appears they worked a fi deal with RBS

[Full Contact Yoga]

The Genco bankruptcy pretty much explains it. Glta, I hope it works out.

[Jumboo]

I am hurting real bad ... Does anyone know what's going on ? What's causing the fall ...

[sman154]

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.

[Bustajoy]

Not sure either. Searched everywhere for news, nothing. Probably it got leaked somewhere. Maybe after hours we will know

[JeezyJ]

Why is this tanking bro?? Im hurting bad

[sman154]

Looks like Eagle's treasury is open today.

[Jumboo]

Bottom out yet ?

[Jumboo]

Are you still in ??

[snidely]

Might pull back a little again but we will be mid $2's soon enough

[Jumboo]

What's next ?

[snidely]

Here we go....

[Jumboo]

Why so ? Any news coming soon ?

[snidely]

This things either going to tank hard or rise back to the upper $2's. Tick tock...

[PAC]

EGLE 1.72 looking for a bounce

[Bustajoy]

Got in 2k shares at $1.69. Looks oversold. Fingers crossed for a bounce

[Bustajoy]

Oversold at this point. I am expecting a bounce today. Need to load up at the bell

[Bottom Up]

Should be! 90% will bounce today!

[Jumboo]

Do you think it has hit the bottom???

[Bottom Up]

In for some, See you guy around $2.30 :)!

[Bustajoy]

Right about now!!! Don't miss this train!!,lol. Use your judgement. Got in at $1.85 though.

[Jumboo]

What's a good point to buy a few ?

[willlbone]

Alpha Attack.

[TerribleTwit]

Yah, read the article.. this EAGLE has finally grounded .. for good. Wouldn't touch it except for a very quick flip.

[renoldman]

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.

[TerribleTwit]

Bottomed out yet ?

[ivorytowerboy]

Up 11% AH on creditor news! Big short squeeze tomorrow?

[msiliezar]

According to latest news, after they filed for 10-k form. EAGLE has been rated as a "sell"

[hamvestor]

Very strange trading in EGLE in the final few minutes each day lately.

[smakkdaddy]

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!!!

[Jester_Vandalay]

I'm planning on sending a letter to the SEC regarding the Bk news

[I-Man]

Thanks! Same to you too...

[Jester_Vandalay]

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

[I-Man]

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...

[Jester_Vandalay]

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.

[Jester_Vandalay]

Baltic Supramax Index (DEC 6) 1555 UP +21

Baltic Supramax Index

[Jester_Vandalay]

Reading the Tea Leaves on Global Shipping Rates

As a proxy for demand for raw materials, the index is widely considered a measure of the health of the global economy. Analysts warned, however, about reading too much into its latest jump, noting that seasonal Chinese imports of iron ore and coal have helped push rates higher in recent weeks.

Rest of the Story

[Jester_Vandalay]

Baltic Supramax Index (DEC 5) 1531 UP +9


Baltic Supramax Index

Historical Trends

[Jester_Vandalay]

Baltic Supramax Index (DEC 4) 1522 UP +15

Baltic Supramax Index

[Jester_Vandalay]

Baltic Supramax Index (DEC 3) 1507 UP +19


Baltic Supramax Index

[Jester_Vandalay]

Baltic Supramax Index (DEC 2) 1488 UP +13

Baltic Supramax Index

[Jester_Vandalay]

Baltic Supramax Index (NOV 29) 1475 UP +17

Baltic Dry Index (NOV 29) 1821 UP +102

Baltic Supramax Index

[Jester_Vandalay]

Baltic Supramax Index (NOV 28)1458 UP +17

Baltic Supramax Index

[brawnycha]

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

[Jester_Vandalay]

Proactive Grain Trading and Common Sense

If you are committed to a trade and placed the trade with valid reasoning, and most important of all, have the risk capital to hold trades don't get caught up with news used to solicit a response that isn't based on true verifiable information.

On any day, with the hundreds of websites now dedicated to commodity trading fundamental traders can find 100s of bullish and 100s of bearish reports.

Rest of the Story

[Jester_Vandalay]

Morning Grains 11/27/13

CORN AND OATS

General Comments: Corn closed lower on fund selling. Funds were selling on big crop sizes and ideas of less demand. There is talk that Chinese interest is less right now. Farmers are not interested in selling and are waiting for higher prices, but end users keep buying. Ideas are that prices are cheap enough to créate additional export demand and that demand for Ethanol will stay strong. Export demand remains strong as well, and feed demand should be increasing as Corn is cheap when compared to Wheat. The harvest is now in its final stages. USDA might need to increase production estimates in January as yields have been very good this year. Production of over 14 billion bushels remains very posible.

SOYBEANS AND PRODUCTS

General Comments: Soybeans were unchanged to lower, and Soybean Meal closed higher on very strong demand and limited offer from producers. Soybean Meal basis levels appear to be very strong in Central Illinois. Soybean Oil was lower again. Front months were stronger than back months on spreads as the demand is thought to be for nearby shipments and as traders looked south and see good growing conditions in Brazil and Argentina. Soybean Oil closed lower on weakness in Palm Oil and worries about biofuel demand. There is a lot of talk that China is about to shift its buying to South America, but it keeps buying here and may have bought more yesterday. Farmers were mostly quiet yesterday. A big crop is expected in South America and is getting planted now under good conditions. Brazil has good moisture for farmers to plant, and rains are improved in Argentina. Mucch of the demand should now be known to the market and prices could start to work lower in the next couple of weeks.

RICE

General Comments: Prices closed lower in holiday market trading. Farmers are not selling and most have got the Rice in storage and are out preparing for the holidays and doing some hunting. Buyers will have to work hard to find any producer selling interest. Asian prices were a little lower yesterday. China will remain a significant importer and should import at least 5.0 million tons. Philippines has apparently bought 500,000 tons of Vietnamese Rice and said the Thai offers were too high. The Rice production losses from Typhoon Hayan and one a few weeks ago are now estimated by the government at 400,000 tons, and could be far higher. Rice production has also been affected as the last of the storm sends big rains into northern Vietnam and southern China and caused flooding at harvest time.

Source Link

[Jester_Vandalay]

U.S. 2013 Farm Income Seen Climbing 15% to Record on Big Crops

Farmers in the U.S., the world’s biggest corn grower, are projected to produce a record 13.989 billion bushels of the grain this year.

Soybean output will be 3.258 billion bushels, the third-biggest ever, government forecasts show.

Global food costs tracked by the United Nations are 14 percent below the all-time high set in February 2011 as crop supplies gained.

Rest of the Story

[Jester_Vandalay]

Market Strategy: Think Profit, Not Price

USDA’s November World Agricultural Supply and Demand Estimates report made up for a two-month absence of "official" information, proving that the corn and soybean crops weren’t anywhere near what the negative pundits were publicizing. This created a false sense of price bullishness. Demand destruction caused by high prices meant a 13-billion-bushel crop would have sufficed.

The January report will provide actual harvested data from producer surveys, eliminating the modeling and discretionary inputs of previous estimates. In the past, the January report has held some 400-million-bushel surprises for corn and could be the final nail in the coffin for prices.

Rest of the Story

[Jester_Vandalay]

Baltic Supramax Index (NOV 27)1441 UP + 23

Baltic Supramax Index