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.”
About Brandy Chetsas
Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector--with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.