You would be wise to read the SEC filings closer. Any cash in excess of $20M on the company's balance sheet automatically goes to RBS. RBS has additional controls on the company's financial situation including the right to control what Eagle can and can't do with assets, and a growing ownership stake in the company by way of the accruing PIK interest, which eventually gets converted to equity. RBS in essence controls all the upside in Eagle until Eagle is able to cure the balance sheet problems.
Eagle's fleet is worth something around $800M today. They owe RBS $1.1B. Until something changes in that relationship, equity holders will see zip for upside. Eagle's cash burn rate is accelerating sharply with higher priced charters turning over, and a greater interest burden from the settlement with RBS.
Eagle will be fighting to keep its share price above $1 after they report Q4 results.
so u must be the voice of misinformation for those who can't do their own thinking ? nice try but full of skew. u make it sound like any and all cash goes to the bank. the covenant exists solely to ensure EGLE doesn't buy more ships until the loan is paid down. regardless of the nonsense, the stock is up from my 12/31 buy at $1.45. with a stop at 1.74 i'm guaranteed to make at least 20% so keep on worrying about nonthin as the rest of us sieze an opportunity.