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Eagle Bulk anticipates bigger operating loss for 2015

Eagle Bulk anticipates bigger operating loss for 2015
Financially-troubled Eagle Bulk Shipping has forecast a deeper operating loss and lower revenue for the year ended 31 December 2015 compared to the previous year.

Along with Eagle Bulk’s announcement to the US Securities & Exchange Commission (SEC) that it is unable to complete its annual report by the deadline, the shipowner said it expects an operating loss of $84m for 2015, down from the loss of $51.6m in 2014.

The expected loss was blamed on decrease in revenue due to lower charter rates. The projected 2015 revenue is $102m, lower than $154.3m earned in 2014.

Eagle Bulk warned that impairment charges may further increase its operating loss for 2015.

It also raised the possibility that auditors may voice concerns about the company’s ability to continue operations if negotiations with banks fail.

“The company continues to engage in such discussions with the aim of reaching an agreement to address the company’s liquidity in the near term. There can be no assurance that any refinancing or restructuring transaction will occur or, if any transaction occurs, that it will ultimately be successful, or that the company’s effort to address its liquidity will be achieved,” Eagle Bulk stated.

The company has already undergone Chapter 11 bankruptcy restructuring in 2014.