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Changed Risks for EAGLE BULK SHIPPING INC (EGLE)

We operate in a highly cyclical and competitive industry Some of the risks relate principally to the industry in which we operate and our business in general Other risks relate principally to the securities market, national and global economic conditions and the ownership of our common stock The occurrence of certain geopolitical, macroeconomic, or industry-specific factors, including the risks outlined below, could adversely affect our business, operating results, cash flows and financial condition

Utilizing derivative instruments, such as forward freight and swap agreements, could result in losses

The global economic environment may have a material adverse effect on our business

Charter hire rates for drybulk vessels are volatile If rates trend downward and/or remain subdued over a prolonged period of time, our financial results and liquidity may be adversely affected, impacting our ability to cover expenses and our ability to comply with debt covenants

The market values of our vessels are volatile and may decline which could limit the amount of funds that we can borrow or cause us to breach certain financial covenants under our credit facilities or bond terms

We may have difficulty managing our planned growth properly and integrating newly acquired vessels

Declines in charter rates and vessel values could cause us to incur impairment charges

An over-supply of drybulk carrier capacity across the industry may depress the charter rates, which may limit our ability to operate our drybulk carriers profitably

If our vessels call on ports located in countries or territories that are subject to comprehensive sanctions imposed by the UN, the United States, the EU or other relevant authorities, or if we are found to be in violation of sanctions, there could be an adverse effect on our reputation, business position, financial condition or results of operations, or the market for our common shares

Changes in the economic and political environment in China and policies adopted by the government to regulate its economy may have a material adverse effect on our business

The loss of one or more of our significant customers may affect our financial performance

We have increased our indebtedness, and if we default under our loan agreements, our lenders may act to accelerate our outstanding indebtedness under our credit facilities, which would impact our ability to continue to conduct our business

The market price of our common shares has fluctuated and may continue to fluctuate in the future

If general economic conditions throughout the world deteriorate, it will impede our results of operations, financial condition and cash flows, and could impair our ability to access capital markets at a reasonable cost

Cyber-attacks or other security breaches involving our computer systems or the systems of one or more of our vendors could materially and adversely affect our business