Reuters reports that Eagle Bulk Shipping filed for bankruptcy on Wednesday and said it reached agreement with its lenders to cut its debt by $975 million.
 
According to the Reuters report, the company said in a statement that creditors who hold more than 85 percent of its loans have voted in favor of a proposed reorganization plan.
 
If approved by the court, the reorganization plan would cancel the company's current stock, which trades on the Nasdaq. Shareholders will receive 0.5 percent of the stock in a reorganized Eagle Bulk, plus warrants to acquire an additional 7.5 percent.
 
The report states the company said Sophocles Zoullas will remain Eagle Bulk's chairman and chief executive after it reorganizes.

To read the full Reuters report, click here.