Eagle Bulk Shipping reached an agreement with the company’s lenders and holders of approximately 75% of the company’s outstanding equity for a comprehensive balance-sheet recapitalization.

The transaction provides Eagle Bulk with approximately $105 million in incremental liquidity, which includes a new second lien facility comprised of $60 million in new capital from existing shareholders, as well as new capital providers.

According to a related 8-K filing, ABN AMRO Capital USA served as agent and security trustee for the lender group with regard to the amended first lien agreement. The second lien facility was led by Wilmington Savings Fund Society as agent for the second lien lenders.

Chief Executive Officer Gary Vogel stated, “We are very pleased to have reached this comprehensive agreement that strengthens Eagle Bulk’s capital structure. The combination of additional liquidity and the enhanced financial flexibility it provides greatly improves our ability to persevere through the current market, and a new corporate structure will enable us to pursue market opportunities. It is, in short, a new foundation for long-term, sustainable success backed by strong support from our lenders and shareholders.”

In addition to the $60 million of proceeds from the new second lien facility, Eagle Bulk will benefit from incremental liquidity through a $14 million permanent reduction in the company’s first lien minimum liquidity requirement, a deferral of more than $31 million in amortization payments through 2018, and renewed, full access to the company’s $50 million revolver.