Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Eagle Bulk Shipping Inc. (EGLE): Oaktree Discloses New Stake Amid Financial Restructuring

Howard MarksOaktree Capital Management has revealed a major position in Eagle Bulk Shipping Inc. (NASDAQ:EGLE) in a new filing with the US Securities and Exchange Commission. Oaktree reported holding around 15.71 million shares of the company, which represent almost 42% of the company’s common stock. The stake is activist by nature.


Oaktree disclosed its stake amid some important news revealed by the company. On October 15, Eagle Bulk Shipping Inc. (NASDAQ:EGLE) said that it has completed its restructuring plan, under which it managed to cut its debt by 80%, which represents around $1 billion in value. The fund added in the filing that OCM Opps EB Holdings, Ltd., a firm affiliated with Oaktree previously held debt of Eagle Bulk Shipping.

At the end of the second quarter, Christopher Pucillo‘s Solus Alternative Asset Management held some 848,400 shares of the company and Geoffrey Raynor‘s Q Investments (Specter Holdings) initiated a stake during the April-June period and held 393,500 shares. Prior to the company filing for bankruptcy its stock dropped by almost 50%. However, under the terms of the reorganization plan, each equity holding in Eagle Bulk Shipping Inc. (NASDAQ:EGLE) was cancelled.

Moreover, the plan allowed Eagle Bulk Shipping Inc. (NASDAQ:EGLE) to secure around $275 million in a new credit facility, including $50 million revolving credit facility.

The new refinancing plan will help Eagle Bulk Shipping Inc. (NASDAQ:EGLE) to deal with the problems caused by the excess capacity in the shipping industry, which has forced many other companies into bankruptcy. Genco Shipping & Trading Limited (OTCMKTS:GNKOQ) filed for bankruptcy in April. Another company, Overseas Shipholding Group Inc. (OTCMKTS:OSGIQ), filed for chapter 11 bankruptcy in 2012, and emerged from it earlier this year.

Oaktree is known for its strategy to follow alternative investments and to focus on distressed debt corporate debt and convertible securities. Last month, the fund added Molycorp Inc (NYSE:MCP) to its equity portfolio, holding some 24.50 million shares and Tembec Inc (USA) (OTCMKTS:TMBCF), of which it owns around 6.13 million shares. Molycorp slightly appreciated since Oaktree revealed its stake, while Tembec lost around 4%. Moreover, the fund’s largest holding at the end of the second quarter, EXCO Resources Inc (NYSE:XCO) lost around 60% over the last two years, while the second-largest, Dynegy Inc. (NYSE:DYN), surged by some 55%.

With this in mind, Bulk Shipping Inc. (NASDAQ:EGLE)’s stock might still have some room to grow, taking into account that the company manages to get back on the track after its restructuring plan. Mr. Marks’ backing the stock is also important since large investors usually spend a lot of time and resources while researching the stocks they plan to invest in.

Disclosure: none

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!