NEW YORK, Feb. 15, 2011 (GLOBE NEWSWIRE) -- Eagle Bulk Shipping Inc. (Nasdaq:EGLE) today provided an update to the market concerning Korea Lines Corporation's ("KLC") decision last month to file for protective receivership. As of today, Eagle Bulk is owed approximately $7.3 million of charter hire from KLC, of which approximately $3.00 million was due and owing prior to KLC filing for rehabilitation on January 25, 2011.
Eagle Bulk management remains in active negotiations concerning the status of its charters with KLC, with the following recent developments:
- All of Eagle Bulk's charters to KLC remain intact, though no charter hire payments are currently being received. Eagle Bulk has been advised by KLC that it expects to receive Court approval in South Korea in order to qualify for rehabilitation later this month, at which time KLC expects to resume charter hire payments.
- To cover the period until the Court allows KLC to resume hire payments, and subject to court approval, Eagle Bulk is working with KLC on arrangements to take over the employment of some of the affected charter vessels for an interim period. All such earnings would be used to offset the charter hire otherwise due from KLC.
- With regard to the "Nighthawk," a newbuilding vessel which is due to deliver to KLC later in the first quarter, Eagle Bulk and KLC have agreed in principle, again subject to Court approval, to defer the commencement of the charter in order to allow Eagle to employ the vessel for its own account for the time being.
Eagle Bulk CFO Alan Ginsberg commented, "We have been working diligently to mitigate potential losses associated with KLC's financial restructuring. Securing alternative employment for our vessels while KLC awaits court approval to resume charter payments constitutes an important step in this regard."About Eagle Bulk Shipping Inc. Eagle Bulk Shipping, Inc., headquartered in New York City, is a leading global owner of Supramax dry bulk vessels, which are dry bulk vessels that range in size from 50,000 to 60,000 deadweight tons, or dwt, and transport a broad range of major and minor bulk cargoes, including iron ore, coal, grain, cement and fertilizer, along worldwide shipping routes.
CONTACT: Eagle Bulk Shipping Inc. Investor Contact Alan Ginsberg, Chief Financial Officer (212) 785-2500 Perry Street Communications Media Contact Jonathan Morgan (212) 741-0014
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