Nasdaq-listed supramax specialist Eagle Bulk has extended its forbearance and standstill agreement with its creditors by a further three days.
The NASDAQ-listed firm now has until March 4 to provide a solution to the money it owes in loans. This is the fourth time Eagle Bulk has sought to extend the agreement.
Eagle Bulk’s lenders, which are being led by ABN AMRO Capital USA, have agreed to waive the minimum liquidity covenant set forth in the loan agreement until March 4 or until the shipping company’s liquidity falls below $12,187,500 or $276,989 per ship. These figures have been reduced by some 14.1% since the forebearance agreement was last amended in late February.
The New York-based company said the extension “is intended to provide the company with additional time and liquidity while discussions with certain of its shareholders and lenders with respect to such financing alternatives are continuing”. It added that financing could not be guaranteed and that the standstill period may yet be extended again.
The creditor agreement relates to a $275m exit financing facility Eagle Bulk secured from its lenders in October 2014, which comprised a $225m term loan and a $50m revolving credit facility. The financial restructuring aimed to boost Eagle Bulk’s balance sheet and liquidity after the shipowner filed for Chapter 11 bankruptcy in August that year.
