Six Month Reprieve – Eagle Gets Relief from a “Technicality”

Back in April, Eagle Bulk Shipping Inc. disclosed a disagreement between its lenders and the company concerning the interpretation of two modified covenants contained in the third amendatory agreement to the revolving credit facility. Under the revised terms, the net worth covenant was amended from a market value to book value measurement with respect to the value of the fleet and the facility’s EBITDA to interest coverage ratio was reduced, with these changes to stay in effect until the company is in compliance with the facility’s original covenants for two consecutive accounting periods.

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