The USbulker owner emerged as the ‘Top Performer’ on the TradeWinds Shipping Index asits Nasdaq-quoted shares rose 6.01% to $3.34.
It’sunclear why the stock gained traction but many investors admit they wereexpecting it to slide on the heels of a regulatory filing that reignited uncertaintyabout the operator’s future.
Whilethe jury is still out some industry observers believe Eagle Bulk was the target ofunusually high options trading, an opinion shared by reporters at a web publicationcalled InterCooler.
Citinga report issued by AnalystRatings.net it said traders purchased 3,179 putoptions on the stock, which represents an increase of nearly 700% when comparedto a typical day’s volume.
The spikefollowed a disclosure in which Eagle Bulk said it landed another extension of awaiver that gives management more time to restructure $1.2bn worth of debt.
Underthe terms of the latest amendment, which marks its fifth stay of execution, theoperator and its lenders much reach an agreement by 27 June.
Industryobservers note the new extension is scheduled to elapse three days before the expirationof the original waiver, which was implemented back in March.
Theyare also quick to point out that, unlike previous extensions, Eagle Bulk wasn’tallowed reset the debt clock without offering its lenders an incentive.
Accordingto the filing the company must pay a forbearance fee of approximately $6m oramend the terms of warrants issued in June of 2012.
If thelatter option is chosen, under the terms of the extension, the warrants wouldbe immediately exercisable at any price, a possibility that led many to believeshares of Eagle Bulk would drop in response to renewed concerns about dilution.
In thefiling the company acknowledged that the lenders are holders of its warrantsand also pointed out that management is scheduled to deliver an update aboutefforts to refinance its $1.2bn credit facility on 12 June.
Whilesome believe this implies that Eagle Bulk may be able to cure its financialmaladies others continue to think it will end up pursuing a restructuring byway of a Chapter 11 bankruptcy filing in the Southern District of New York.
Eagle Bulk is basedin Manhattan where it oversees a fleet of over 40 supramax bulkers. Today,tonnage trading spot was commanding day rates of around $8,500 onaverage while units seeking period work saw levels of around $13,000.