Eagle Bulk Shipping has signed a forbearance and standstill agreement with its lenders that will hold off any action after the owner missed a scheduled loan repayment on January 15.
The agreement gives Eagle Bulk until February 2 to resolve the matter with its banks. The company says it is in discussions with shareholders and lenders to find alternative financing.
Eagle Bulk was unable to make the quarterly repayment after being found to be in breach of a loan facility from ABN AMRO Capital USA and a consortium of other lenders.
As a result of the breach, Eagle Bulk said its lenders decided the company could not access or draw down any additional amounts from the revolving credit facility included under the loan agreement.
The loan agreement was breached by “apparent violations in the provision of shipping services for third-party charterers with respect to the transportation of cargo”, Eagle Bulk said today.