Eagle Bulk extends forbearance and standstill agreement

Eagle Bulk

Eagle Bulk has extended its forbearance and standstill agreement with its creditors by a further three days. This is the fourth time the company has managed to extend the agreement.

The NASDAQ-listed firm now has until March 4 to provide a solution to the money it owes in loans.

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.

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.

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