Eagle Bulk Shipping RSA Approved


The U.S. Bankruptcy Court approved Eagle Bulk Shipping’s motion to assume entry of an order (i) authorizing the assumption of a restructuring support agreement (RSA), (ii) authorizing payment of the RSA fee to the extent it becomes payable and (iii) granting related relief. As previously reported, “Eagle entered into the RSA with Consenting Lenders collectively holding over 85% of the outstanding loans under that certain Fourth Amended and Restated Credit Agreement, dated as of June 20, 2012, and constituting more than two-thirds of the lenders under the Prepetition Credit Agreement. The RSA also paves the way for the settlement embodied in the Plan that will allow the Debtor to exit chapter 11 expeditiously, thereby preserving business operations and providing the best available opportunity for the Debtor to maximize value for its estate….Without the Plan and RSA, the Debtor could be subjected to a protracted bankruptcy process that could have a significant and negative impact on Eagle’s business operations, including, among other things, deterioration of trade terms, customers withholding payment, the threat of arrested Vessels, and other operational disruptions, each of which could result in a loss of revenues for Eagle. The consummation of the Plan on the terms and timetable established by the RSA will avoid the vast majority of these concerns, thereby maintaining and maximizing value for Eagle’s stakeholder.”

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