Eagle Bulk Shipping Files for Bankruptcy

Posted by Michelle Howard
Wednesday, August 06, 2014
Photo courtesy of Eagle Bulk Shipping

Eagle Bulk Shipping filed for bankruptcy on Wednesday, the latest in a string of shipping companies to make a Chapter 11 filing, and said it reached agreement with its lenders to cut its debt by $975 million.

The U.S. company said in a statement that creditors who hold more than 85 percent of its loans have voted in favor of a proposed reorganization plan.

Getting creditor support for a "prepackaged" plan before filing for Chapter 11 can dramatically cut the time a company spends in bankruptcy. Eagle Bulk filed in Manhattan's U.S. Bankruptcy Court.

Under the plan, lenders would receive nearly all the stock in the company in return for what they are owed.

If approved by the court, the reorganization plan would cancel the company's current stock, which trades on the Nasdaq. Shareholders will receive 0.5 percent of the stock in a reorganized Eagle Bulk, plus warrants to acquire an additional 7.5 percent.

Shareholders almost always lose their entire investment in a bankruptcy.

Eagle Bulk shares were up 4 percent at $1.32 in early trading on Wednesday.

The company said Sophocles Zoullas will remain Eagle Bulk's chairman and chief executive after it reorganizes.

Eagle Bulk follows a string of shipping companies into Chapter 11, as new ships entered the market and created a glut of capacity, depressing rates. Genco Shipping & Trading, Overseas Shipholding Group, Excel Maritime Carriers and Nautilus Holdings Ltd have filed for bankruptcy in recent years.

The case is In Re: Eagle Bulk Shipping Inc, U.S. Bankruptcy Court, Southern District of New York, No. 14-12303

(Reporting by Tom Hals in Wilmington, Delaware; Editing by Paul Simao)

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

TMR Unit MarCom Integrates with MCP

Telenor Maritime Radio’s (TMR) business unit for the commercial maritime communications market, MarCom, integrates with Maritime Communications Partner (MCP).   The internal transfer in Telenor,

Petronas to Deliver LNG from FLNG in Q1 2016

The world's first floating liquefied natural gas (LNG) project, built by Petronas, is expected to supply its first cargoes in the first quarter of 2016, senior

IRS on Talent Acquisition Spree

IRClass, the Leading Ship Classification Society has hired 17 of the brightest and best Naval Architecture students from the elite technical institutes of India.

Finance

Petronas to Deliver LNG from FLNG in Q1 2016

The world's first floating liquefied natural gas (LNG) project, built by Petronas, is expected to supply its first cargoes in the first quarter of 2016, senior

UN: EU Should Do More in Med Migrant Crisis

UN refugee agency calls for intra-European solidarity. The U.N. refugee agency on Tuesday urged European leaders to do more to help Greece and Italy cope with

U.S. Ports Account for 26% of Nation’s Economy

From 2007 to 2014, the total economic value that U.S. coastal ports provide in terms of revenue to businesses, personal income and economic output by exporters and importers rose 43 percent to $4.

News

TMR Unit MarCom Integrates with MCP

Telenor Maritime Radio’s (TMR) business unit for the commercial maritime communications market, MarCom, integrates with Maritime Communications Partner (MCP).   The internal transfer in Telenor,

Petrojarl I Drydocked for EPC Redeployment Upgrade

FPSO upgrade marks major step for Damen Shiprepair & Conversion as a full service conversion group   After four months of preliminary work alongside, FPSO Petrojarl I moved on April 16,

Wärtsilä Launches AHTS Vessel Design at Sea Asia

Wärtsilä launched a new anchor handling tug supply (AHTS) vessel design at this year's Sea Asia exhibition held in Singapore from April 21-23.   According to the designer,

 
 
Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1982 sec (5 req/sec)