BANKRUPTCY PLAYS

[sludgehound]

EGLE pre pack Bk filed

Did drop & pop. @0.90 open to 1.48

9:58am ET 8/6/14
Eagle Bulk Shipping Inc. filed plans to restructure its debt through a prepackaged Chapter 11 bankruptcy filing.
Eagle Bulk said it expects to reduce its debt by about $975 million and it has support of creditors holding more than 85% of the loans outstanding under its credit agreement, exceeding the two-thirds threshold needed to gain bankruptcy court confirmation of the plan.
Many shipping companies, including Eagle Bulk, borrowed to grow their fleets when shipping activity peaked in 2008. They are now 1struggling to make loan payments since the rates they charge to transport goods have fallen, though there has been some pickup more recently.
Fellow bulk-rate shipper Genco Shipping & Trading filed for Chapter 11 bankruptcy protection in April under a prepackaged restructuring plan that was confirmed by a federal bankruptcy judge last month.
Eagle Bulk has obtained a commitment for up to $50 million of debtor-in-possession financing and plans to continue its day-to-day operations.
Eagle Bulk received a seventh default waiver last month from lenders, which include Oaktree Capital Management , Centerbridge Partners and Canyon Partners , owed $1.2 billion . The waiver gave the company an additional three weeks-- until Tuesday--to reach an agreement on the terms of a binding restructuring agreement.
Whispers of the possibility of a prepackaged bankruptcy began late last year when The Wall Street Journal reported that Eagle Bulk had hired restructuring advisers to help put together a lender-supported agreement, possibly to be filed as a bankruptcy case.
Write to Tess Stynes at [e-mail]
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(END) Dow Jones Newswires
08-06-14 0958ET
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