UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K


                                 CURRENT REPORT
                       PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

         Date of Report (Date of earliest event reported): July 6, 2006


                            EAGLE BULK SHIPPING INC.
           (Exact name of each Registrant as specified in its Charter)



        Marshall Islands                  000-51366            98-0453513
   (State or other jurisdiction       (Commission File       (IRS employer
of incorporation or organization)          Number)         identification no.)

      477 Madison Avenue                                          10022
      New York, New York                                        (Zip Code)

    (Address of principal
      executive offices)


(Registrant's telephone number, including area code): (212) 785-2500


                   (Former name or former address, if changed
                              since last report.)
                                 Not Applicable

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[  ]  Written communications pursuant to Rule 425 under the Securities
      Act (17 CFR 230.425)

[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
      (17 CFR 240.14a-12)

[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))

[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the
      Exchange Act (17 CFR 240.13e-4(c))



Item 7.01.  Regulation FD

         On July 6,  2006 the Company issued a press release  announcing receipt
of a commitment to increase the size of its credit facility to $450  million.  A
copy of the press release is attached as Exhibit 99.1.



                                   SIGNATURES


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.


July 7, 2006
                                 EAGLE BULK SHIPPING INC.


                                 By: /s/ Sophocles N. Zoullas
                                     --------------------------------
                                         Sophocles N. Zoullas
                                         Chief Executive Officer and President




                                                                   Exhibit 99.1
                                                                   ------------

Eagle Bulk Shipping Inc. Increases Size of Credit Facility to $450 Million

NEW YORK, July 6, 2006 --  Eagle Bulk Shipping Inc. (NasdaqGS:  EGLE), a  global
marine  transportation  company  specializing  in  the Supramax  segment of  the
dry bulk  shipping  industry,  today  announced  that the Company has received a
commitment  from its  lender,  the Royal Bank of Scotland  plc, to increase  and
amend its revolving credit facility to $450 million from $330 million.

Sophocles  Zoullas,  Chairman  and  Chief  Executive  Officer,  commented,  "The
Company's  amended  credit  facility  will  enhance  our  ability to achieve our
business goals and lowers our overall cost of capital.  The facility's increased
size  will  result in the  Company  having an  undrawn  commitment  of over $230
million  once our latest  vessel  acquisitions  announced  on June 23,  2006 are
completed.  We believe that the continued  support of the Royal Bank of Scotland
plc in increasing the size of the facility on an unsyndicated  basis underscores
the Company's sound business model. Additionally, we believe that the facility's
amended  credit terms will prove  beneficial  to the Company,  and therefore our
shareholders, as we grow the business going forward."

The entire $450 million  facility  will be  available  for a period of six years
from the availability  date,  compared to four years remaining in the commitment
period of the  Company's  existing  facility.  There are no principal  repayment
obligations during this initial six-year period.  Over the remaining four years,
the facility  will reduce in  semi-annual  amounts of  $25,000,000  with a final
reduction of $250,000,000  occurring  simultaneously  with the last  semi-annual
reduction.

The  amended  facility,   which  is  subject  to  the  execution  of  definitive
documentation,  will  bear  interest  at the rate of 0.75% to 0.85%  over  LIBOR
(decreased from 0.95% over LIBOR),  depending upon the amount of debt drawn as a
percentage  of the  value  of the  Company's  vessels.  The  Company  will pay a
commitment fee of 0.25% per annum  (decreased  from 0.40%) on the undrawn amount
of the facility.


About Eagle Bulk Shipping Inc.

Eagle Bulk Shipping Inc. is a Marshall Islands corporation  headquartered in New
York City.  We are the largest  U.S.-based  owner of Handymax dry bulk  vessels,
which are dry bulk vessels  that range in size from 35,000 to 60,000  deadweight
tons,  or dwt,  and  transport  a broad  range of major and minor bulk  cargoes,
including iron ore, coal, grain, cement and fertilizer, along worldwide shipping
routes.  Our strategy is to charter our modern fleet primarily  pursuant to one-
to  three-year  time  charters to allow us to take  advantage of the stable cash
flow and high  utilization  rates that are associated  with medium- to long-term
time charters.

Forward-Looking Statements

Matters  discussed in this release may  constitute  forward-looking  statements.
Forward-looking  statements  reflect  our current  views with  respect to future
events and financial  performance and may include  statements  concerning plans,
objectives,  goals,  strategies,   future  events  or  performance,   underlying
assumptions and other statements,  which are other than statements of historical
facts, as well as the completion and acceptance of definitive documentation. The
forward-looking  statements in this release are based upon various  assumptions,
many of which are based, in turn, upon further  assumptions,  including  without
limitation,  management's  examination  of  historical  operating  trends,  data
contained in our records and other data available  from third parties.  Although
Eagle Bulk Shipping Inc.  believes that these  assumptions  were reasonable when
made,   because  these   assumptions  are  inherently   subject  to  significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control,  Eagle Bulk Shipping Inc. cannot assure you that it will
achieve or accomplish these expectations, beliefs or projections.

Important  factors  that,  in our view,  could  cause  actual  results to differ
materially from those discussed in the  forward-looking  statements  include the
strength of world economies and currencies, general market conditions, including
changes in  charterhire  rates and  vessel  values,  changes in demand  that may
affect  attitudes of time  charterers to scheduled and  unscheduled  drydocking,
changes in our vessel operating  expenses,  including  dry-docking and insurance
costs, or actions taken by regulatory authorities, ability of our counterparties
to perform their  obligations  under sales agreements and charter contracts on a
timely  basis,   potential  liability  from  future  litigation,   domestic  and
international political conditions,  potential disruption of shipping routes due
to accidents and political events or acts by terrorists.

Risks and  uncertainties  are further  described in reports  filed by Eagle Bulk
Shipping Inc. with the U.S. Securities and Exchange Commission.

Visit our website at http://www.eagleships.com

CONTACT:  Eagle Bulk Shipping Inc.
          Investors:
          Alan Ginsberg
          212-785-2500

          Mandelbaum & Morgan
          Media:
          Jonathan Morgan
          212-741-0014


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