Eagle Bulk Shipping Inc. (NASDAQ:EGLE) Files An 8-K Other Events

Eagle Bulk Shipping Inc. (NASDAQ:EGLE) Files An 8-K Other Events
Item 8.01. Other Events

As previously reported, in 2015, Eagle Bulk Shipping Inc. (the “Company”) filed a voluntary self-disclosure report with the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) regarding certain apparent violations of U.S. sanctions regulations in the provision of shipping services for third party charterers with respect to the transportation of cargo to or from Myanmar (formerly Burma) (the “Apparent Violations”). The Company had a different senior management team at the time of the Apparent Violations, which occurred between 2011 and 2014. The Company’s new senior management and new Board of Directors self-reported the Apparent Violation, cooperated fully with OFAC’s investigation and has since implemented robust remedial measures and significantly enhanced its compliance safeguards.
On January 23, 2020, Eagle Shipping International (USA) LLC (“Eagle Shipping”), a subsidiary of the Company, entered into a settlement agreement (the “Settlement Agreement”) with OFAC in which Eagle Shipping agreed to make a one-time payment to the U.S. Department of the Treasury in the amount of $1.125 million and undertake certain compliance commitments in exchange for OFAC agreeing to release and forever discharge the Company and its subsidiaries, including Eagle Shipping, without any finding of fault, from any and all civil liability in connection with the Apparent Violations. The settlement does not constitute any admission of fault or wrongdoing by the Company or any of its subsidiaries.
The Company does not believe that this payment will have a material impact on the Company’s consolidated financial statements.
On January 27, 2020, OFAC made available on its website a summary of the Settlement Agreement and the Settlement Agreement itself.
The description of the Settlement Agreement is qualified in its entirety by reference to the text of the Settlement Agreement, which is included as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Forward-Looking Statements
Matters discussed in this Current Report on Form 8-K may constitute forward-looking statements. Forward-looking statements reflect management\’s current expectations and observations with respect to future events and financial performance. Where the Company expresses an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, the Company\’s forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected, or implied by those forward-looking statements. The Company\’s actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors, including changes in the Company’s financial resources and operational capabilities and as a result of certain other factors listed from time to time in the Company\’s filings with the U.S. Securities and Exchange Commission. The Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
(d) Exhibits
Eagle Bulk Shipping Inc. Exhibit
EX-99.1 2 exhibit991eaglesettlemen.htm EXHIBIT 99.1 exhibit991eaglesettlemen SETTLEMENT AGREEMENT This settlement agreement (the “Agreement”) is made by and between the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and Eagle Shipping International (USA) LLC (referred to hereafter as “Eagle Shipping” or “Respondent”). I. PARTIES OFAC administers and enforces economic and trade sanctions against targeted foreign countries,…
To view the full exhibit click here

An ad to help with our costs