Eagle Bulk Enters Forbearance Agreement
Eagle Bulk Shipping Inc. announced that it has entered into a waiver and forbearance agreement with certain lenders under the company's fourth amended and restated credit facility, effective March 19, 2014. Subject to the company's compliance with certain terms, conditions and milestones as set forth in the waiver, the lenders have agreed to waive until June 30, 2014, any potential events of default related to, among other things, noncompliance by the company with the leverage ratio or minimum interest coverage ratio covenants set forth in the credit agreement.
While Eagle Bulk is continuing discussions with its lenders as part of the waiver, the company cautioned that there is no assurance such discussions will result in a comprehensive resolution.