BANKRUPTCY PLAYS

[sludgehound]

EGLE dip continues on Bk threat
$1.87 -.04 this am and Baltic Dry Index -2% to 863.

02:46 PM EDT, 07/08/2014 (MT Newswires) -- Shares in Eagle Bulk Shipping (EGLE) plunged 32% and touched a 52-week low after the company said in an SEC filing it had reached agreement with lenders under which warrant holders could convert their holdings immediately into shares of common stock on a cashless basis.
The dry bulk shipper said it was trying to reach agreement with lenders on a restructuring of the company. It said in the filing that any restructuring would likely be substantially dilutive to current shareholders.
On Seeking Alpha, Acadia Capital Management predicted that based on a recent ruling in a bankruptcy case for a comparable dry bulk shipping company, Genco Shipping (GNK), Eagle Bulk's shareholders are at risk of substantial losses.
Acacia said Eagle is in default of its credit facility and predicted the company will likely file for Chapter 11 bankruptcy protection in the next few weeks in order to restructure its balance sheet.
In afternoon trade, EGLE was down 32-37% to $1.88 after hitting a 52-week low of $1.80 earlier in the session.
Price: 1.97, Change: -0.81, Percent Change: -29.14
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