Eagle Bulk Shipping has entered into an amended agreement with its lenders, withdrawing certain restrictions on the lenders in exercising their warrants in the company.

The amended deal to a Warrant Agreement entered into in June 2012 has eliminated certain conditions restricting the exercise of warrants held by the lenders, including a minimum share price condition.

The latest agreement signed on Tuesday would also prevent the lenders from trading or transferring their warrants or shares for as long as they remain in talks to restructure Eagle Bulk, under the Waiver and Forbearance Agreement signed on 19 March this year.

Last week, Eagle Bulk received a two-week extension until 15 July for talks to continue with the lenders on restructuring the shipowner’s debts.

“The company continues to have discussions with representatives of the lenders pursuant to the Waiver and Forbearance Agreement,” the company said in a filing to the stock exchange.

“Although there can be no assurance that the company will be able to reach an agreement with the lenders regarding the terms of a restructuring, it is expected that any restructuring transaction would be substantially dilutive to the company’s current shareholders,” the statement added.