Eagle Bulk Predicts Higher Losses

first_imgzoom Financially-troubled Eagle Bulk Shipping expects to report a full-year operating loss of approximately USD 84 million, further deepening the loss of USD 51.6 million it posted for the corresponding period in 2014.With regard to revenue expectations, the company anticipates to report USD 102 million in revenue for the year ended December 31, 2015, down from USD 154.3 million from the previous year.The decrease in revenues and increase in operating losses were primarily attributed to lower charter rates earned by its fleet in 2015. In addition, the company said it was currently evaluating the carrying amounts of its vessels and whether any of its vessels are impaired, which, if found, would further impact the operating loss for the year.The expectations are announced as the company is in talks with its lenders concerning financing alternatives to enhance the company’s liquidity, which is said to be one of the reasons why it has not finalized its financial statements for the year ending December 31, 2015.“If the company does not consummate a refinancing or restructuring transaction to enhance its liquidity before the issuance of the company’s audited financial statements as of and for the year ended December 31, 2015, and the filing of the Form 10-K, the company believes that there would be substantial doubt about its ability to continue as a going concern,” Eagle Bulk said.On March 9, the company managed to yet again extend the forbearance period with its lenders on its loan agreement which was due to be paid in January for March 22, 2016.World Maritime News Stafflast_img

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