Eagle Bulk Shipping Inc (EGLE): Steven Tananbaum Discloses An Increase to his Holding

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In August of 2014, Eagle Bulk Shipping Inc (NASDAQ:EGLE) filed for bankruptcy, after it failed to meet an interest payment in June. Thanks to a restructuring plan, which was agreed upon with the lenders, the company was able to secure a new credit facility of around $275 million. The refinancing program finally enabled Eagle Bulk Shipping to solve the issues that had arisen from the shipping industry’s excess capacity. When the company announced it had completed the restructuring plan in October, share prices rose considerably.

Eagle Bulk Shipping’s positive announcement was welcomed by investors like GoldenTree Asset Management, which immediately entered a large position in the equity. Much like Oaktree Capital, Mr. Tananbaum’s firm has extensive experience in the credit markets and might have seen the company’s recovering situation as a good opportunity to invest. Although the investment might pay off in the long-run, the stock’s development over the past few months has not been great. From mid-October to the beginning of February, share prices plummeted, losing around 39% of their value.

Despite the fact that share prices have dropped considerably over the past few months, the optimism displayed by Eagle Bulk Shipping Inc (NASDAQ:EGLE)’s institutional investors seems justified. After all, the company managed to recover from its complicated financial situation rather quickly. Furthermore, the backing of major investment firms is a clear signal that the shipping company still holds intrinsic value and could continue to grow.

Disclosure: none.

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