Cash-strapped Eagle Bulk has finally reached a deal to re-capitalize its balance sheet.

After months of negotiations Eagle Bulk has reached agreement with its lenders and roughly 75% of holders of equity in the firm in a transaction that provides $105m in incremental liquidity. It also includes a new second lien facility of $60m in new capital from both existing shareholders and new capital providers.

The combination of additional liquidity and the enhanced financial flexibility it provides greatly improves our ability to persevere through the current market, and a new corporate structure will enable us to pursue market opportunities,” commented Gary Vogel ceo of Eagle Bulk.

“It is, in short, a new foundation for long-term, sustainable success backed by strong support from our lenders and shareholders.”

The deal also includes a $14m permanent reduction in the minimum liquidity requirement for the company’s first lien, and deferral of $31m in amortization payments through to 2018.

The transaction will also see changes to Eagle Bulk’s organizational structure which it said would allow it to pursue growth opportunities in the dry bulk market.