10-Q

Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2007
OR

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

For the transition period fromto

Commission File Number 000–51366

EAGLE BULK SHIPPING INC.

(Exact name of Registrant as specified in its charter)

Republic of the Marshall Islands			98-0453513
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

477 Madison Avenue
New York, New York 10022
Address of Principal Executive Offices

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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES       NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of ‘‘accelerated filer and large accelerated filer’’ in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated Filer    Accelerated Filer     Non-accelerated Filer

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES       NO

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the last practicable date.

Common Stock, par value $0.01 per share 46,727,153 shares outstanding as of November 9, 2007.

TABLE OF CONTENTS

						Page
PART I			FINANCIAL INFORMATION
Item 1.			Financial Statements
			Consolidated Balance Sheets as of September 30, 2007 (unaudited) and December 31, 2006					1
			Consolidated Statements of Operations (unaudited) for the three months ended September 30, 2007 and 2006 and for the nine months ended September 30, 2007 and 2006					2
			Consolidated Statement of Stockholders’ Equity (unaudited) for the nine months ended September 30, 2007					3
			Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2007 and 2006					4
			Notes to Consolidated Financial Statements					5
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations					15
Item 3.			Quantitative and Qualitative Disclosures about Market Risk					30
Item 4.			Controls and Procedures					30
PART II			OTHER INFORMATION
Item 1.			Legal Proceedings					31
Item 1A.			Risk Factors					31
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds					31
Item 3.			Defaults upon Senior Securities					31
Item 4.			Submission of Matters to a Vote of Security Holders					31
Item 5.			Other Information					31
Item 6.			Exhibits					32
			Signatures					33

Table of Contents

Part 1:    FINANCIAL INFORMATION

Item 1:    Financial Statements

EAGLE BULK SHIPPING INC.
CONSOLIDATED BALANCE SHEETS

			September 30, 2007						December 31, 2006
			(Unaudited)
ASSETS:
Current Assets:
Cash				$	154,947,136					$	22,275,491
Accounts Receivable					2,033,860						616,205
Prepaid Charter Revenue					500,000						3,740,000
Prepaid Expenses					1,618,699						1,020,821
Total Current Assets					159,099,695						27,652,517
Vessels and Vessel Improvements, net					611,870,650						502,141,951
Advances for Vessel Construction					290,399,551						25,190,941
Restricted Cash					7,324,616						6,524,616
Deferred Drydock Costs, net					3,838,826						1,937,299
Deferred Financing Costs, net					2,509,504						2,406,839
Other Assets					—						2,936,804
Total Assets				$	1,075,042,842					$	568,790,967
LIABILITIES & STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts Payable				$	4,129,487					$	1,650,159
Accrued Interest					2,993,138						800,683
Other Accrued Liabilities					1,796,334						1,717,124
Unearned Charter Hire Revenue					4,671,174						2,713,060
Total Current Liabilities					13,590,133						6,881,026
Long-term Debt					527,839,099						239,974,820
Other Liabilities					3,151,969						359,180
Total Liabilities					544,581,201						247,215,026
Stockholders’ Equity:
Preferred Stock, $.01 par value, 25,000,000 shares authorized, none issued					—						—
Common shares, $.01 par value, 100,000,000 shares authorized, 46,727,153 shares issued and outstanding as of September 30, 2007 and 35,900,001 shares issued and outstanding as of December 31, 2006, respectively					467,271						359,000
Additional Paid-In Capital					601,938,926						364,574,877
Retained Earnings (net of cumulative dividends declared of $145,161,905 at September 30, 2007 and $86,390,500 at December 31, 2006)					(68,792,587	)					(45,935,560	)
Accumulated Other Comprehensive(Loss)/Income					(3,151,969	)					2,577,624
Total Stockholders’ Equity					530,461,641						321,575,941
Total Liabilities and Stockholders’ Equity				$	1,075,042,842					$	568,790,967

The accompanying notes are an integral part of these Consolidated Financial Statements.

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EAGLE BULK SHIPPING INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

			Three Months Ended												Nine Months Ended
			September 30, 2007						September 30, 2006						September 30, 2007						September 30, 2006
Revenues, net of Commissions				$	33,955,704					$	28,358,830					$	89,202,283					$	76,254,265
Vessel Expenses					6,647,223						6,118,038						19,749,702						15,742,457
Depreciation and Amortization					7,241,927						5,980,747						19,079,511						15,737,990
General and Administrative Expenses					1,570,980						1,266,905						4,787,974						3,366,408
Non-cash Compensation Expense					120,614						3,076,699						3,504,193						5,768,355
Gain on Sale of Vessel					—						—						(872,568	)					—
Total Operating Expenses					15,580,744						16,442,389						46,248,812						40,615,210
Operating Income					18,374,960						11,916,441						42,953,471						35,639,055
Interest Expense					3,476,977						3,180,336						9,789,541						7,364,009
Interest Income					(603,912	)					(364,632	)					(2,750,448	)					(1,009,928	)
Net Interest Expense					2,873,065						2,815,704						7,039,093						6,354,081
Net Income				$	15,501,895					$	9,100,737					$	35,914,378					$	29,284,974
Weighted Average Shares Outstanding :
Basic					42,209,617						35,900,000						40,493,753						34,086,813
Diluted					42,365,252						35,900,678						40,590,796						34,086,848
Per Share Amounts:
Basic Net Income				$	0.37					$	0.25					$	0.89					$	0.86
Diluted Net Income				$	0.37					$	0.25					$	0.88					$	0.86
Cash Dividends Declared and Paid				$	0.47					$	0.50					$	1.48					$	1.57

The accompanying notes are an integral part of these Consolidated Financial Statements.

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EAGLE BULK SHIPPING INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007

																					Retained Earnings
			Common Shares						Common Shares Amount						Additional Paid-In Capital						Net Income						Cash Dividends						Accumulated Deficit						Other Comprehensive Income						Total Stockholders’ Equity
Balance at December 31, 2006					35,900,001					$	359,000					$	364,574,877					$	40,454,940					$	(86,390,500	)				$	(45,935,560	)				$	2,577,624					$	321,575,941
Comprehensive Income:
Net Income					—						—						—						35,914,378						—						35,914,378						—						35,914,378
Net Unrealized losses on change in derivatives					—						—						—						—						—						—						(5,729,593	)					(5,729,593	)
Comprehensive Income					—						—						—						—						—						—						—						30,184,785
Issuance of Common Shares, net of issuance costs					10,827,152						108,271						233,859,856						—						—						—						—						233,968,127
Cash Dividends					—						—						—						—						(58,771,405	)					(58,771,405	)					—						(58,771,405	)
Non-cash Compensation					—						—						3,504,193						—						—						—						—						3,504,193
Balance at September 30, 2007					46,727,153					$	467,271					$	601,938,926					$	76,369,318					$	(145,161,905	)				$	(68,792,587	)				$	(3,151,969	)				$	530,461,641

The accompanying notes are an integral part of these Consolidated Financial Statements.

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EAGLE BULK SHIPPING INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)

			Nine Months Ended
			September 30, 2007						September 30, 2006
Cash Flows from Operating Activities:
Net Income				$	35,914,378					$	29,284,974
Adjustments to Reconcile Net Income to Net Cash provided by Operating Activities:
Items included in net income not affecting cash flows:
Depreciation					18,008,485						15,222,940
Amortization of Deferred Drydocking Costs					1,071,026						515,050
Amortization of Deferred Financing Costs					180,070						117,491
Amortization of Prepaid and Deferred Charter Revenue					3,240,000						2,435,500
Non-cash Compensation Expense					3,504,193						5,768,355
Gain on Sale of Vessel					(872,568	)					—
Changes in Operating Assets and Liabilities:
Accounts Receivable					(1,417,655	)					(117,058	)
Prepaid Expenses					(597,878	)					(1,086,031	)
Accounts Payable					2,300,317						713,068
Accrued Interest					2,192,455						136,810
Accrued Expenses					79,210						547,114
Drydocking Expenditures					(2,972,553	)					(2,269,422	)
Unearned Charter Hire Revenue					1,958,114						854,621
Net Cash Provided by Operating Activities					62,587,594						52,123,412
Cash Flows from Investing Activities:
Advances for Vessel Construction					(265,089,166	)					—
Purchase of Vessels and Improvements					(138,876,098	)					(105,112,609	)
Proceeds from Sale of Vessel					12,011,482						—
Net Cash Used in Investing Activities					(391,953,782	)					(105,112,609	)
Cash Flows from Financing Activities:
Issuance of Common Stock					239,848,266						33,000,000
Equity Issuance Costs					(5,701,127	)					(1,784,436	)
Bank Borrowings					300,304,279						74,800,000
Repayment of Bank Debt					(12,440,000	)					—
(Increase)/Decrease in Restricted Cash					(800,000	)					100,000
Deferred Financing Costs					(402,180	)					(1,018,807	)
Cash Dividends					(58,771,405	)					(53,420,500	)
Net Cash Provided by Financing Activities					462,037,833						51,676,257
Net Increase/(Decrease) in Cash					132,671,645						(1,312,940	)
Cash at Beginning of Period					22,275,491						24,526,528
Cash at End of Period				$	154,947,136					$	23,213,588
Supplemental Cash Flow Information:
Cash paid during the period for Interest (including Capitalized interest of $2,296,435 in 2007 and Commitment Fees)				$	11,843,726					$	7,110,772

The accompanying notes are an integral part of these Consolidated Financial Statements.

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EAGLE BULK SHIPPING INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1.    Basis of Presentation and General Information

The accompanying consolidated financial statements include the accounts of Eagle Bulk Shipping Inc. and its wholly-owned subsidiaries (collectively, the ‘‘Company’’). The Company is engaged in the ocean transportation of dry bulk cargoes worldwide through the ownership and operation of dry bulk vessels. The Company’s fleet is comprised of Handymax bulk carriers and the Company operates its business in one business segment.

The Company is a holding company incorporated in 2005, under the laws of the Republic of the Marshall Islands and is the sole owner of all of the outstanding shares of the Republic of the Marshall Island incorporated wholly owned subsidiaries. The primary activity of each of the subsidiaries is the ownership of a vessel. The operations of the vessels are managed by a wholly-owned subsidiary of the Company, Eagle Shipping International (USA) LLC, a Republic of the Marshall Islands limited liability company.

The following table represents certain information about the Company’s revenue earning charters, as of September 30, 2007:

Vessel			Year Built			Dwt			Delivered to Charterer			Time Charter Expiration(1)			Daily Time Charter Hire Rate
Cardinal			2004			55,408			June 21, 2007			May 2008 to August 2008			$28,000
Condor(2)			2001			50,296			March 19, 2007			May 2009 to August 2009			$20,500
Falcon(3)			2001			50,296			April 22, 2005			February 2008 to June 2008			$20,950
Griffon			1995			46,635			March 18, 2007			March 2009 to June 2009			$20,075
Harrier(4)			2001			50,296			June 21, 2007			June 2009 to September 2009			$24,000
Hawk I			2001			50,296			April 1, 2007			April 2009 to June 2009			$22,000
Heron (5)			2001			52,827			December 11, 2005			December 2007 to February 2008			$24,000
Jaeger(6)			2004			52,248			July 12, 2007			July 2008 to September 2008			$27,500
Kestrel I(7)			2004			50,326			July 1, 2006			December 2007 to April 2008			$18,750
Kite			1997			47,195			August 11, 2007			September 2009 to January 2010			$21,000
Merlin(8)			2001			50,296			October 26, 2005			October 2007 to December 2007			$24,000
Osprey I(9)			2002			50,206			September 1, 2005			July 2008 to November 2008			$21,000
Peregrine			2001			50,913			December 16, 2006			December 2008 to March 2009			$20,500
Sparrow(10)			2000			48,225			January 27, 2007			December 2007 to March 2008			$24,000
Tern (11)			2003			50,200			July 3, 2006			December 2007 to April 2008			$19,000
Shrike (12)			2003			53,343			April 24, 2007			April 2009 to August 2009			$24,600
Skua(13)			2003			53,350			June 20, 2007			May 2009 to August 2009			$24,200
Kittiwake(14)			2002			53,146			June 27, 2007			May 2008 to August 2008			$30,400

(1) The date range provided represents the earliest and latest date on which the charterer may redeliver the vessel to the Company upon the termination of the charter.

(2) The charterer of the CONDOR has exercised its option to extend the charter period by 11 to 13 months at a time charter rate of $22,000 per day.

(3) Upon conclusion of the current charter, the FALCON commences a new time charter with a rate of $39,500 per day for 21 to 23 months. The charterer has an option to extend the charter period by 11 to 13 months at a daily time charter rate of $41,000.

(4) The daily rate for the HARRIER is $27,000 for the first year and $21,000 for the second year. Revenue recognition is based on an average daily rate of $24,000.

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(5) Upon conclusion of the current charter, the HERON commences a new time charter with a rate of $26,375 per day for 36 to 39 months. The charterer has an option for a further 11 to 13 months at a time charter rate of $27,375 per day. The charterer has a second option for a further 11 to 13 months at a time charter rate of $28,375 per day.

(6) The charter rate for the JAEGER may reset at the beginning of each month based on the average time charter rate for the Baltic Supramax Index, but in no case less than $22,500 per day.

(7) The charterer of the KESTREL I has exercised its option to extend the charter period by 11 to 13 months at a daily time charter rate of $20,000 per day.

(8) Upon conclusion of the current charter, the MERLIN commences a new 36 to 39 month time charter. The daily rate is $27,000 for the first year, $25,000 for the second year and $23,000 for the third year. Revenue recognition is based on an average daily rate of $25,000.

(9) The charterer of the OSPREY I has exercised its option to extend the charter period by up to 11 to 13 months at a time charter rate of $25,000 per day. The charterer has an additional option to extend for a further 11 to 13 months at a time charter rate of $25,000 per day.

(10) The SPARROW is on a time charter at a base rate of $24,000 per day for 11 to 13 months with a profit share of 30% of up to the first $3,000 per day over the base rate. Upon conclusion of the charter, the SPARROW commences a new 24 to 26 month time charter at a rate of $34,500 per day.

(11) The charterer of the TERN has exercised its option to extend the charter period by 11 to 13 months at a time charter rate of $20,500 per day.

(12) The Company took delivery of the SHRIKE on April 24, 2007 and the vessel was immediately delivered to the charterer at a time charter rate of $24,600 per day for 24 to 27 months. The charterer has an option to extend the charter period by 12 to 14 months at a daily time charter rate of $25,600.

(13) The Company took delivery of the SKUA on June 20, 2007 and the vessel was immediately delivered to the charterer at a time charter rate of $24,200 per day for 23 to 25 months. The charterer has an option to extend the charter period by 11 to 13 months at a daily time charter rate of $25,200.

(14) The Company took delivery of the KITTIWAKE on June 27, 2007 and the vessel was immediately delivered to the charterer at a time charter rate of $30,400 per day for 11 to 13 months. The charter rate may reset at the beginning of each month based on the average time charter rate for the Baltic Supramax Index, but in no case less than $24,400 per day.

As of September 30, 2007, the Company has contracted for 31 vessels to be constructed. The following table represents certain information about the Company’s newbuilding vessels and their employment upon delivery:

Vessel			Dwt			Year Built- Expected Delivery(1)			Time Charter Employment Expiration(2)			Daily Time Charter Hire Rate(3)			Profit Share
Crowned Eagle			56,000			Nov 2008			Charter Free			—			—
Crested Eagle			56,000			Feb 2009			Charter Free			—			—
Stellar Eagle			56,000			Apr 2009			Charter Free			—			—
Golden Eagle			56,000			Jan 2010			Charter Free			—			—
Imperial Eagle			56,000			Feb 2010			Charter Free			—			—
Wren			53,100			Aug 2008			Feb 2012 Feb 2012 to Dec 2018/Apr 2019			$24,750 $18,000			— 50% over $22,000

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Vessel

Dwt

Year Built- Expected Delivery(1)

Time Charter Employment Expiration(2)

Daily Time Charter Hire Rate(3)

Profit Share

Woodstar

53,100

Oct 2008

Jan 2014 Jan 2014 to Dec 2018/Apr 2019

$18,300 $18,000

— 50% over $22,000

Thrush

53,100

Sep 2009

Charter Free

—

—

Thrasher

53,100

Nov 2009

Feb 2016

$18,400

—

Feb 2016 to Dec 2018/Apr 2019

$18,000

50% over $22,000

Avocet

53,100

Dec 2009

Mar 2016

$18,400

—

Mar 2016 to Dec 2018/Apr 2019

$18,000

50% over $22,000

Bittern

58,000

Sep 2009

Dec 2014

$18,850

—

Dec 2014 to Dec 2018/Apr 2019

$18,000

50% over $22,000

Canary

58,000

Oct 2009

Jan 2015

$18,850

—

Jan 2015 to Dec 2018/Apr 2019

$18,000

50% over $22,000

Crane

58,000

Nov 2009

Feb 2015

$18,850

—

Feb 2015 to Dec 2018/apr 2019

$18,000

50% over $22,000

Egret(4)

58,000

Dec 2009

Sep 2012 to Jan 2013

$17,650

50% over $20,000

Gannet(4)

58,000

Jan 2010

Oct 2012 to Feb 2013

$17,650

50% over $20,000

Grebe(4)

58,000

Feb 2010

Nov 2012 to Mar 2013

$17,650

50% over $20,000

Ibis(4)

58,000

Mar 2010

Dec 2012 to Apr 2013

$17,650

50% over $20,000

Jay

58,000

Apr 2010

Sep 2015

$18,500

50% over $21,500

Sep 2015 to Dec 2018/Apr 2019

$18,000

50% over $22,000

Kingfisher

58,000

May 2010

Oct 2015

$18,500

50% over $21,500

Oct 2015 to Dec 2018/Apr 2019

$18,000

50% over $22,000

Martin

58,000

Jun 2010

Dec 2016 to Dec 2017

$18,400

—

Nighthawk

58,000

Mar 2011

Sep 2017 to Sep 2018

$18,400

—

Oriole

58,000

Jul 2011

Jan 2018 to Jan 2019

$18,400

—

Owl

58,000

Aug 2011

Feb 2018 to Feb 2019

$18,400

—

Petrel(4)

58,000

Sep 2011

Jun 2014 to Oct 2014

$17,650

50% over $20,000

Puffin(4)

58,000

Oct 2011

Jul 2014 to Nov 2014

$17,650

50% over $20,000

Roadrunner(4)

58,000

Nov 2011

Aug 2014 to Dec 2014

$17,650

50% over $20,000

Sandpiper(4)

58,000

Dec 2011

Sep 2014 to Jan 2015

$17,650

50% over $20,000

Snipe

58,000

Jan 2012

Charter Free

—

—

Swift

58,000

Feb 2012

Charter Free

—

—

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Vessel

Dwt

Year Built- Expected Delivery(1)

Time Charter Employment Expiration(2)

Daily Time Charter Hire Rate(3)

Profit Share

Raptor

58,000

Mar 2012

Charter Free

—

—

Saker

58,000

Apr 2012

Charter Free

—

—

(1) Vessel build and delivery dates are estimates based on guidance received from shipyard.

(2) The date range represents the earliest and latest date on which the charterer may redeliver the vessel to the Company upon the termination of the charter.

(3) The time charter hire rate presented are gross daily charter rates before brokerage commissions ranging from 2.25% to 6.25% to third party ship brokers.

(4) The charterer has an option to extend the charter by 2 periods of 11 to 13 months each.

The following table represents certain information about the Company’s revenue earning charters, as of, September 30, 2007:

			% of Time Charter Revenue
			Three Months Ended						Nine Months Ended
			September 30, 2007			September 30, 2006			September 30, 2007			September 30, 2006
Charterer
Charterer A			11.79%			14.4%			13.41%			15.3%
Charterer B			20.82%			19.4%			23.07%			17.3%
Charterer C						11.6%						13.9%
Charterer D			10.28%			12.0%			12.65%			12.3%
Charterer E						7.2%						7.8%
Charterer F						6.2%						7.0%
Charterer H			11.50%						11.29%
Charterer J			11.08%
Charterer L			13.41%

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, and the rules and regulations of the SEC (‘‘Securities and Exchange Commission’’) which apply to interim financial statements. Accordingly, they do not include all of the information and footnotes normally included in consolidated financial statements prepared in conformity with accounting principles in the United States. They should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2006 Annual Report on Form 10-K.

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Note 2.    Vessels

a.    Vessel and Vessel Improvements

At September 30, 2007, the Company’s fleet consisted of a total of 18 dry bulk vessels with an aggregate cost of $657,821,237 and accumulated depreciation of $45,950,587.

At December 31, 2006, the Company’s fleet consisted of a total of 16 dry bulk vessels with an aggregate cost of $533,557,555 and accumulated depreciation of $31,415,604.

Vessel and vessel improvement costs have been depreciated from the date of their acquisition through their remaining estimated useful life. Depreciation expense for the three-month periods ended September 30, 2007 and 2006 was $6,773,810 and $5,775,804, respectively. Depreciation expense for the nine-month periods ended September 30, 2007 and 2006 was $18,008,485 and $15,222,940, respectively.

During the nine-month period ended September 30, 2007, the Company entered into several vessel purchase agreements and a vessel sale agreement:

	–	The Company purchased in the first quarter and took delivery in the second quarter of three modern Supramax vessels, the SHRIKE, SKUA and KITTIWAKE, for a total contract price of approximately $138,700,000. The Company also incurred associated costs of $176,098 relating to these vessel acquisitions.

	–	The Company sold the SHIKRA, a 1984-built Handymax vessel, to an unrelated third party for $12,525,000. The Company incurred total expenses of $513,518 relating to the sale. The Company recorded a gain on sale of $872,568 in the first quarter of 2007.

b.    Advances for Vessel Construction

As of September 30, 2007, the Company has 31 vessels under construction. During the nine-month period ended September 30, 2007, the Company, through its subsidiaries, entered into three vessel newbuilding contracts for the construction of an additional three 56,000 deadweight, ton vessels, to be named CROWNED EAGLE, CRESTED EAGLE and STELLAR EAGLE, which are expected to be delivered in November 2008, February 2009, and April 2009, respectively. The contract price for each vessel is 3.83 billion Japanese yen, or approximately $33,355,000 after giving effect to currency hedges entered into by the Company. Deposits have been placed for these contracts and an amount of $38,113,974 is recorded under Advances for Vessel Construction. As of September 30, 2007, the Company had placed deposits aggregating $62,912,092 for five 56,000 deadweight ton newbuilding vessels, of which $25,265,936 was placed in the first quarter of 2007 for the CROWNED EAGLE and CRESTED EAGLE, $12,848,038 was placed in the second quarter of 2007 for the STELLAR EAGLE and $24,798,118 was placed in 2006 for the GOLDEN EAGLE and IMPERIAL EAGLE. The Company will pay an additional 10% of each vessel’s contract price three months prior to delivery and the balance upon delivery. The deposits for the newbuilding vessels have been funded through borrowings from its credit facility and the borrowing costs are capitalized and recorded under Advances for Vessel Construction.

During the third quarter of 2007, the Company acquired 26 Supramax newbuilding vessels from Kyrini Shipping Inc., an unrelated privately held Greek shipping company for a total consideration of approximately $1,100,000,000 which includes construction contracts aggregating approximately $944,000,000 and cash consideration of $150,000,000 to purchase all of the issued and outstanding shares of the capital stock of 19 wholly owned subsidiaries of Kyrini Shipping Inc., a Liberian corporation whose primary assets consisted of contracts for the construction of 18 Supramax drybulk vessels and options for the construction of a further 8 Supramax drybulk vessels which were exercised on August 1, 2007. The vessels are expected to be delivered between 2008 and 2012 and the Company will periodically advance construction payments to the shipyard. As of September 30, 2007, the Company has advanced a total of $221,462,500 in regards to this transaction and these amounts have been funded through borrowings from its credit facility and recorded under Advances for Vessel Construction. The assets acquired are required to be recorded at fair value. The amounts recorded as of September 30, 2007 are preliminary and subject to the completion of a valuation.

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For these newbuilding vessels, borrowing costs and other associated costs are capitalized and recorded under Advances for Vessel Construction until each vessel is delivered to the Company. During the three-month period ended September 30, 2007, the Company incurred and capitalized interest costs of $3,256,349 ($3,208,775 in interest and $47,574 in amortization of financing expenses) and other costs of $895,462. During the nine-month period ended September 30, 2007, the Company incurred capitalized interest costs of $4,613,023 ($4,493,578 in interest and $119,445 in amortization of financing expenses) and other costs of $1,019,113. For the newbuilding program, as of September 30, 2007, the Company has capitalized interest costs of $4,872,603 and other costs of $1,152,356.

Note 3.    Long-Term Debt

At September 30, 2007, the Company’s debt consisted of $527,839,099 in borrowings under its current revolving credit facility. These borrowings consisted of $238,704,000 for the 18 vessels currently in operation and $289,135,099 to fund the Company’s newbuilding program.

During the nine-month period ended September 30, 2007, the Company borrowed a gross amount of $300,304,279 from its revolving credit facility and used $12,440,000 from the gross proceeds of the sale of the SHIKRA to repay borrowings from the revolving credit facility. Of these borrowings, $36,344,000 was used to partly fund the purchase of the three vessels, SHRIKE, SKUA and KITTIWAKE, which were delivered in the second quarter, $259,576,474 was used to fund the advances for the newbuilding vessels, and $4,383,805 was used to fund the capitalized borrowing costs and other costs associated with the newbuilding vessels.

The Company’s revolving credit facility has been amended and enhanced periodically to accommodate the newbuilding program. The incremental borrowings are subject to the same terms and conditions as the existing credit facility. As of September 30, 2007, total availability under the revolving credit facility was $600,000,000 of which $527,839,099 has been borrowed (see Note 9).

The revolving credit facility bears interest at the rate of 0.75% to 0.85% over LIBOR, depending upon the amount of debt drawn as a percentage of the value of the Company’s vessels. The Company pays on a quarterly basis a commitment fee of 0.25% per annum on the undrawn amount of the facility.

Interest Expense, exclusive of capitalized interest, consists of:

			Three Months Ended												Nine Months Ended
			September 30, 2007						September 30, 2006						September 30, 2007						September 30, 2006
Loan Interest				$	3,340,888					$	2,986,183					$	9,247,055					$	6,720,658
Commitment Fees					73,803						142,887						362,416						525,860
Amortization of Deferred Financing Costs					62,286						51,266						180,070						117,491
Total Interest Expense				$	3,476,977					$	3,180,336					$	9,789,541					$	7,364,009

Interest-Rate Swaps

The Company has entered into interest rate swaps to effectively convert a portion of its debt from a floating to a fixed-rate basis. Under these swap contracts, exclusive of applicable margins, the Company will pay fixed rate interest and receive floating-rate interest amounts based on three-month LIBOR settings. The swaps are designated and qualify as cash flow hedges.

As of September 30, 2007, the Company has the following swap contracts outstanding:

	–	Notional amount of $100,000,000 with a fixed interest rate of 4.22% and maturity in September 2010

	–	Notional amount of $30,000,000 with a fixed interest rate of 4.54% and maturity in September 2010

	–	Notional amount of $84,800,000 with a fixed interest rate of 5.24% and maturity in September 2009

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	–	Notional amount of $25,048,118 with a fixed interest rate of 4.74% and maturity in December 2011

	–	Notional amount of $25,776,443 with a fixed interest rate of 4.90% and maturity in March 2010

	–	Notional amount of $36,752,038 with a fixed interest rate of 5.22% and maturity in August 2012

	–	Notional amount of $202,340,000 with a fixed interest rate of 5.04% and maturity in August 2010

	–	Notional amount of $10,995,000 with a fixed interest rate of 4.98% and maturity in August 2010

The Company records the fair value of the interest rate swaps as an asset or liability on its balance sheet. The effective portion of the swap is recorded in accumulated other comprehensive income. Accordingly, a liability of $3,046,504 and an asset of $2,936,804 has been recorded in Other Assets and Other Liabilities, in the Company’s financial statements as of September 30, 2007 and December 31, 2006, respectively.

Foreign Currency Swaps

The Company has entered into foreign exchange swap transactions to hedge foreign currency risks on its capital asset transactions (vessel newbuildings). The swaps are designated and qualify as cash flow hedges.

At December 31, 2006, the Company had outstanding foreign currency swap contracts for notional amounts aggregating 4.386 billion Japanese yen swapped into the equivalent of $42,310,465. During the nine-month period ended September 30, 2007, the Company swapped a total of 11.5 billion in Japanese yen currency exposure into the equivalent of $100,063,505. After giving effect to the deposits paid for the vessels in the newbuildings program, at September 30, 2007, the Company had outstanding foreign currency swap contracts for notional amounts aggregating 11.28 billion Japanese yen swapped into the equivalent of $104,259,998.

The Company records the fair value of the currency swaps as an asset or liability in its financial statements. The effective portion of the swap is recorded in accumulated other comprehensive income. Accordingly, an amount of $105,465 and $359,180 have been recorded in Other Liabilities in the accompanying financial statements as of September 30, 2007 and December 31, 2006, respectively.

Note 4.    Commitments and Contingencies

Vessel Technical Management Contracts

The Company has technical management agreements for each of its vessels with independent technical managers. The Company paid average monthly technical management fees of $8,851 and $8,990 per vessel during the three and nine months ended September 30, 2007, respectively.

Note 5.    Earnings Per Common Share

The computation of basic earnings per share is based on the weighted average number of common shares outstanding during the period. In March 2006, the Company granted options to purchase 56,666 of the Company’s common shares under the 2005 Stock Incentive Plan. During the three-month period ended September 30,2007, 13,333 shares were issued pursuant to the exercise of options under this plan. In January 2007, under the same plan, the Company granted options to purchase 537,334 of the Company’s common shares. Diluted net income per share gives effect to the aforementioned stock options using the treasury stock method.

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			Three Months Ended												Nine Months Ended
			September 30, 2007						September 30, 2006						September 30, 2007						September 30, 2006
Net Income/(Loss)				$	15,501,895					$	9,100,737					$	35,914,378					$	29,284,794
Weighted Average Shares – Basic					42,209,617						35,900,000						40,493,753						34,086,813
Dilutive effect of stock options					155,635						678						97,043						35
Weighted Average Shares – Diluted					42,365,252						35,900,678						40,590,796						34,086,848
Basic Earnings Per Share				$	0.37					$	0.25					$	0.89					$	0.86
Diluted Earnings Per Share				$	0.37					$	0.25					$	0.88					$	0.86

Note 6.    Non-cash Compensation

For the three-month periods ended September 30, 2007 and 2006, the Company recorded non-cash compensation charges of $120,614 and $3,076,699, respectively. The expense for the three-month period ended September 30, 2007 relates to the stock options granted in January 2007 to members of management under the 2005 Stock Incentive Plan (see Note 8). The expense for the three-month period ended September 30, 2006 relates to profits interests awarded to members of the Company’s management by the Company’s former principal shareholder Eagle Ventures LLC.

For the nine-month periods ended September 30, 2007 and 2006, the Company recorded non-cash compensation charges of $3,504,193 and $5,768,355, respectively. The expense for the nine-month period ended September 30, 2007 included $3,137,812 in non-cash, non-dilutive charges relating to profits interests awarded to members of the Company’s management by the Company’s former principal shareholder Eagle Ventures LLC, and a non-cash charge of $366,381 which related to the stock options granted by the Company in January 2007 to certain directors of the Company and members of management under the 2005 Stock Incentive Plan (see Note 8). Non-cash compensation charges for the nine months ended September 30, 2006, included $3,076,699 in non-cash, non-dilutive charges relating to profits interests awarded to members of the Company’s management by the Company’s principal shareholder Eagle Ventures LLC, and a non-cash amount of $47,033 which relates to the stock options granted by the Company to certain directors of the Company under the 2005 Stock Incentive Plan. The non-cash, non-dilutive charges relating to profits interests ended in the first quarter of 2007 and there will be no charges in future periods.

Note 7.    Capital Stock

Common Shares

On January 16, 2007, the Company’s then principal shareholder, Eagle Venture LLC, sold 7,202,679 of the Company’s common shares in a secondary offering. The Company did not receive any proceeds from this offering.

On March 6, 2007, the Company sold 5,400,000 of the Company’s common shares at a price to the public of $18.95 per share, raising gross proceeds of $102,330,000. On March 23, 2007, the Company raised an additional $7,841,870 in gross proceeds from the underwriter’s exercise of their over-allotment option for the sale of 413,819 of the Company’s common shares. The Company used the proceeds from the offering to fund a portion of the acquisition costs of three vessels, the SHRIKE, SKUA and KITTIWAKE, which the Company agreed to acquire in the first quarter and which were delivered in the second quarter.

On September 21, 2007, the Company sold 5,000,000 of the Company’s common shares at a price of $25.90 per share, raising gross proceeds of $129,500,000.

The Company has incurred fees and expenses aggregating $5,875,138 for these share sales.

Dividends

The Company’s current policy is to declare quarterly dividends to shareholders in March, May, August and November. Payment of dividends is limited by the terms of certain agreements which the

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Company and its subsidiaries are party to. The Company’s revolving credit facility permits it to pay quarterly dividends in amounts up to its quarterly earnings before extraordinary or exceptional items, interest, taxes, depreciation and amortization (Credit Agreement EBITDA), less the aggregate amount of interest incurred and net amounts payable under interest rate hedging agreements during the relevant period and an agreed upon reserve for dry-docking for the period, provided that there is not a default or breach of loan covenant under the credit facility and the payment of the dividends would not result in a default or breach of a loan covenant. Depending on market conditions in the dry bulk shipping industry and acquisition opportunities that may arise, the Company may be required to obtain additional debt or equity financing which could affect its dividend policy. However, any determination to pay dividends in the future will be at the discretion of the Board of Directors and will depend upon the Company’s results of operations, financial condition, capital restrictions, covenants and other factors deemed relevant by the Board of Directors.

On February 15, 2007, the Company’s Board of Directors declared a cash dividend for the fourth quarter of 2006 of $0.51 per share, based on 35,900,001 of the Company’s common shares outstanding, payable to all shareholders of record as of February 28, 2007. The aggregate amount of this cash dividend paid to the Company’s shareholders on March 2, 2007 was $18,309,000.

On April 18, 2007, the Company’s Board of Directors declared a cash dividend for the first quarter of 2007 of $0.50 per share, based on 41,713,820 of the Company’s common shares outstanding, payable to all shareholders of record as of April 30, 2007. The aggregate amount of this cash dividend paid to the Company’s shareholders on May 3, 2007 was $20,856,910.

On July 18, 2007, the Company’s Board of Directors declared a cash dividend for the second quarter of 2007 of $0.47 per share, based on 41,713,820 of the Company’s common shares outstanding, payable to all shareholders of record as of August 1, 2007. The aggregate amount of this cash dividend paid to the Company’s shareholders on August 7, 2007 was $19,605,495.

Note 8.    2005 Stock Incentive Plan

The Company adopted the 2005 Stock Incentive Plan for the purpose of affording an incentive to eligible persons. The 2005 Stock Incentive Plan provides for the grant of equity-based awards, including stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonuses, dividend equivalents and other awards based on or relating to the Company’s common shares to eligible non-employee directors, selected officers and other employees and independent contractors. The plan is administered by a committee of the Company’s Board of Directors.

An aggregate of 2.6 million shares of the Company’s common stock has been authorized for issuance under the plan. On March 17, 2006, the Company granted options to purchase 56,666 of the Company’s common shares to its independent non-employee directors. These options vested and became exercisable on the grant date at an exercise price of $13.23 per share. During the three-month period ended September 30, 2007, options to purchase 13,333 shares were exercised in the third quarter ended September 30, 2007. On January 12, 2007, the Company granted options to purchase 13,334 of the Company’s common shares to its independent non-employee directors and 524,000 of the Company’s common shares to members of its management. The options have an exercise price of $17.80 per share and they vested and became exercisable for the non-employee directors on the grant date while the options for management vest an d become exercisable over three years. All options expire ten years from the date of grant.

For purposes of determining compensation cost for the Company’s stock option plans using the fair value method of FAS 123(R), the fair value of the options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions: risk free interest rate of 5%, dividend yield of 11%, expected stock price volatility factor of 0.45. For the three-month and nine-month periods ended September 30, 2007, the Company recorded non-cash compensation charges of $120,614 and $366,381, respectively, relating to the of these stock options.

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Note 9.    Subsequent Events

Credit Facility

On October 19, 2007, the Company entered into an amended and restated Credit Agreement with the Royal Bank of Scotland plc to increase the amount available under its revolving credit facility from $600 million to $1.6 billion. The amended facility has a term of ten years, and there are no principal repayment obligations until July 2012. Over the remaining five years until maturity in July 2017, the facility will reduce in semi-annual amounts of $75,000,000 with a final reduction of $850,000,000 occurring simultaneously with the last semi-annual reduction. The facility bears interest at the rate of 0.80% to 0.90% over LIBOR, and is subject to a commitment fee of 0.25% annually on unused amounts. The amended facility also provides the Company with the ability to borrow up to $20,000,000 for working capital purposes.

Dividend

On November 7, 2007, the Company’s Board of Directors declared a cash dividend for the third quarter of 2007 of $0.50 per share, based on 46,727,153 of the Company’s common shares outstanding, payable to all shareholders of record as of November 21, 2007. The aggregate amount of this cash dividend payable to the Company’s shareholders on November 28, 2007 is $23,363,577.

Stock Incentive Plan

On October 3, 2007 the Company granted 360,000 restricted stock units to members of its management which represent the right to receive one share of common stock as of the date of vesting with such vesting to occur ratably over three years at 331/3% on each yearly anniversary of the date of grant.

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ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

The following is a discussion of the Company’s financial condition and results of operation for the three-month and nine-month periods ended September 30, 2007 and 2006. This section should be read in conjunction with the consolidated financial statements included elsewhere in this report and the notes to those financial statements.

This discussion contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995 and are intended to be covered by the safe harbor provided for under these sections. These statements may include words such as ‘‘believe,’’ ‘‘estimate,’’ ‘‘project,’’ ‘‘intend,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘anticipate,’’ and similar expressions in connection with any discussion of the timing or nature of future operating or financial performance or other events. Forward looking statements reflect management’s current expectations and observations with respect to future events and financial performance. Where we express 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, our 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 principal factors that affect our financial position, results of operations and cash flows include, charter market rates, which have recently increased to historic highs, and periods of charter hire, vessel operating expenses and voyage costs, which are incurred primarily in U.S. dollars, depreciation expenses, which are a function of the cost of our vessels, significant vessel improvement costs and our vessels’ estimated useful lives, and financing costs related to our indebtedness. Our actual results may differ materially from those anticipated in these forward looking statements as a result of certain factors which could include the follo wing: (i) changes in demand in the dry bulk market, including, without limitation, changes in production of, or demand for, commodities and bulk cargoes, generally or in particular regions; (ii) greater than anticipated levels of dry bulk vessel new building orders or lower than anticipated rates of dry bulk vessel scrapping; (iii) changes in rules and regulations applicable to the dry bulk industry, including, without limitation, legislation adopted by international bodies or organizations such as the International Maritime Organization and the European Union or by individual countries; (iv) actions taken by regulatory authorities; (v) changes in trading patterns significantly impacting overall dry bulk tonnage requirements; (vi) changes in the typical seasonal variations in dry bulk charter rates; (vii) changes in the cost of other modes of bulk commodity transportation; (viii) changes in general domestic and international political conditions; (ix) changes in the condition of the Company’s vessels o r applicable maintenance or regulatory standards (which may affect, among other things, our anticipated dry docking costs); (x) and other factors listed from time to time in our filings with the Securities and Exchange Commission. This discussion also includes statistical data regarding world dry bulk fleet and orderbook and fleet age. We generated some of these data internally, and some were obtained from independent industry publications and reports that we believe to be reliable sources. We have not independently verified these data nor sought the consent of any organizations to refer to their reports in this annual report. We disclaim 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.

Overview

We are Eagle Bulk Shipping Inc., a Republic of the Marshall Islands corporation headquartered in New York City. We are the largest U.S. based owner of Handymax dry bulk vessels. Handymax dry bulk vessels 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. As of September 30, 2007, we owned and operated a modern fleet of 18 Handymax dry bulk vessels. In addition to our operating fleet of 18 vessels, we have also entered into contracts for 31 newbuilding vessels which are scheduled to be constructed and delivered to us between August 2008 and April 2012. These acquisitions will bring our total operating and newbuild fleet to 49 vessels with a cargo carrying capacity of 2.7 million deadweight tons.

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We are focused on maintaining a high quality fleet that is concentrated primarily in one vessel type – Handymax dry bulk carriers and its sub-category of Supramax vessels which are Handymax vessels ranging in size from 50,000 to 60,000 dwt. Fifteen of the 18 vessels in our operating fleet at September 30, 2007, are classified as Supramax dry bulk vessels. These vessels have the cargo loading and unloading flexibility of on-board cranes while offering cargo carrying capacities approaching that of Panamax dry bulk vessels, which range in size from 60,000 to 100,000 dwt and must rely on port facilities to load and offload their cargoes. We believe that the cargo handling flexibility and cargo carrying capacity of the Supramax class vessels make them attractive to potential charterers. The 18 vessels in our operating fleet, with an aggregate carrying capacity of 915,502 deadweight tons, have an average age of only 6 years compared to an average age f or the world Handymax dry dulk fleet of over 15 years.

Each of our vessels is owned by us through a separate wholly owned Republic of the Marshall Islands limited liability company.

We maintain our principal executive offices at 477 Madison Avenue, New York, New York 10022. Our telephone number at that address is (212) 785-2500. Our website address is www.eagleships.com. Information contained on our website does not constitute part of this quarterly report.

Our financial performance since inception is based on the following key elements of our business strategy:

	(1)	concentration in one vessel category: Handymax dry bulk vessels, which we believe offer size, operational and geographical advantages (over Panamax and Capesize vessels),

	(2)	our strategy is to charter our vessels 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. Reliance on the spot market contributes to fluctuations in revenue, cash flow, and net income. On the other hand, time charters provide a shipping company with a predictable level of revenues. We have entered into time charters for all of our vessels which range in length from one to three years and provide for fixed semi-monthly payments in advance. This strategy is effective in strong and weak dry bulk markets, giving us security and predictability of cashflows when we look at the volatility of the shipping markets,

	(3)	maintain high quality vessels and improve standards of operation through improved environmental procedures, crew training and maintenance and repair procedures, and

	(4)	maintain a balance between purchasing vessels as market conditions and opportunities arise and maintaining prudent financial ratios (e.g. leverage ratio).

New Acquisitions

During the first quarter of 2007, we purchased three modern Supramax vessels, the SHRIKE, SKUA and KITTIWAKE, for a total contract price of $138,700,000. We took delivery of the SHRIKE on April 24, 2007, the SKUA on June 20, 2007 and the KITTIWAKE on June 27, 2007. Upon their delivery to us, these vessels immediately commenced time charters.

In the nine months ended September 30, 2007, we have further expanded our newbuilding program by entering into three additional contracts with IHI Marine United Inc., a Japanese shipyard, for the construction of ‘Future-56’ class Supramax 56,000 deadweight ton vessels. In March 2007, we entered into two contracts with the shipyard for the construction of the CROWNED EAGLE and CRESTED EAGLE, which are expected to be delivered in November 2008 and February 2009, respectively. In April 2007, we entered into a contract with the shipyard for the construction of the STELLAR EAGLE, which is expected to be delivered in April 2009. The contract price for each vessel is 3.83 billion Japanese yen or approximately $33,355,000 after giving effect to currency hedges.

As of September 30, 2007, we have five 56,000 deadweight ton vessel newbuildings on order and we have placed deposits aggregating $62,912,092 towards the construction of these vessels. Of these deposits, $25,265,936 and $12,848,038 were placed during the first and second quarter of 2007, respectively.

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During the third quarter of 2007, we acquired a fleet of 26 Supramax newbuilding vessels for a total consideration of approximately $1,100,000,000 from Kyrini Shipping Inc., a Liberian corporation. The consideration includes approximately $944,000,000 in construction contracts payable to the shipyard and a cash consideration of $150,000,000 to purchase all of the issued and outstanding shares of the capital stock of 19 wholly owned subsidiaries of Kyrini Shipping Inc., a Liberian corporation whose primary assets consisted of contracts for the construction of 18 Supramax drybulk vessels and options for the construction of a further 8 Supramax drybulk vessels which were exercised on August 1, 2007. Five of these Supramax vessels are of the 53,000 deadweight ton category, while the remaining 21 are of the 58,000 deadweight ton category. These vessels are expected to be delivered between 2008 and 2012. Of these 26 vessels, 21 vessels are secured by long-te rm charters through 2018, as represented in the Notes to the accompanying financial statements.

With these transactions, the Company has increased its fleet from 23 vessels to 49 vessels with an aggregate carrying capacity of 2.7 million deadweight tons.

Sale of Vessel

In February 2007, we sold the SHIKRA, a 1984-built Handymax vessel to an unrelated third party for $12,525,000. We recorded a gain on the sale of $872,568.

Fleet Management

The management of our fleet includes the following functions:

	•	Strategic management.    We locate, obtain financing and insurance for, purchase and sell vessels.

	•	Commercial management.    We obtain employment for our vessels and manage our relationships with charterers.

	•	Technical management.    The technical manager performs day-to-day operations and maintenance of our vessels.

Commercial and Strategic Management

We carry out the commercial and strategic management of our fleet through our wholly owned subsidiary, Eagle Shipping International (USA) LLC, a Republic of the Marshall Islands limited liability company that maintains its principal executive offices in New York City. We currently have a total of fifteen shore based personnel, including our senior management team and our office staff, who either directly or through this subsidiary, provides the following services:

•    commercial operations and technical supervision;    

•    safety monitoring;    

•    vessel acquisition; and    

•    financial, accounting and information technology services.

Technical Management

The technical management of our fleet is provided by unaffiliated third party technical managers. Until recently, V.Ships, whom we believe is the world’s largest provider of independent ship management and related services, was the sole technical manager of our fleet. However, the recent growth in our fleet has provided us with an opportunity to bring in an additional manager and benchmark our vessel technical operations. We have therefore entered into agreements with Barbers International Ltd., a leading internationally recognized ship manager to technically manage some of our vessels. We review the performance of our ship managers on an ongoing basis and may add or change technical managers.

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Our technical managers are paid a fixed management fee for each vessel in our operating fleet for the technical management services provided. For the three-month period ended September 30, 2007, the technical management fee averaged $8,851 per vessel per month compared to $8,583 per vessel per month in the corresponding period ended September 30, 2006. For the nine-month period ended September 30, 2007, the technical management fee averaged $ 8,990 per vessel per month compared to $8,583 per vessel per month in the corresponding period ended September 30, 2006.

Value of Assets and Cash Requirements

The replacement costs of comparable new vessels may be above or below the book value of our fleet. The market value of our fleet may be below book value when market conditions are weak and exceed book value when markets conditions are strong. In common with other shipowners, we may consider asset redeployment which at times may include the sale of vessels at less than their book value.

The Company’s results of operations and cash flow may be significantly affected by future charter markets.

Critical Accounting Policies

The discussion and analysis of our financial condition and results of operations is based upon our interim, unaudited, consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States, and the rules and regulations of the SEC which apply to interim financial statements. The preparation of those financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosure of contingent assets and liabilities at the date of our financial statements. Actual results may differ from these estimates under different assumptions and conditions.

Critical accounting policies are those that reflect significant judgments of uncertainties and potentially result in materially different results under different assumptions and conditions. As the discussion and analysis of our financial condition and results of operations is based upon our interim, unaudited, consolidated financial statements, they do not include all of the information on critical accounting policies normally included in consolidated financial statements. Accordingly, a detailed description of these critical accounting policies should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Reports on Form 10-K. There have been no material changes from the ‘‘Critical Accounting Policies’’ previously disclosed in our Form 10-K for the year ended December 31, 2006.

Results of Operations for the three-month and nine-month periods ended September 30, 2007 and 2006

Fleet Data

We believe that the measures for analyzing future trends in our results of operations consist of the following:

			Three Months Ended												Nine Months Ended
			September 30, 2007						September 30, 2006						September 30, 2007						September 30, 2006
Ownership Days					1,656						1,463						4,510						3,816
Available Days					1,607						1,443						4,440						3,752
Operating Days					1,595						1,437						4,417						3,734
Fleet Utilization					99.3	%					99.6	%					99.5	%					99.5	%

	•	Ownership days:    We define ownership days as the aggregate number of days in a period during which each vessel in our fleet has been owned by us. Ownership days are an indicator of the size of our fleet over a period and affect both the amount of revenues and the amount of expenses that we record during a period.

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Our fleet size in 2007 has increased from that of 2006, resulting in an increase in Ownership days. During the three-month period ended September 30, 2007, we operated 18 vessels compared to 16 vessels in the corresponding quarter in 2006. During the nine-month period ended September 30, 2007, we operated 18 vessels, net of the sale of the SHIKRA in the first quarter of 2007, compared to 16 vessels in the corresponding period in 2006.

	•	Available days:    We define available days as the number of our ownership days less the aggregate number of days that our vessels are off-hire due to vessel familiarization upon acquisition, scheduled repairs or repairs under guarantee, vessel upgrades or special surveys and the aggregate amount of time that we spend positioning our vessels. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues.

During the three-month periods ended September 30, 2007 and 2006, we incurred 49 and 20 drydock days, respectively. During the nine-month period ended September 30, 2007, we incurred 49 and 63 drydock days, respectively. Available days in 2007 increased, due to larger fleet size compared to the corresponding period in 2006. Available days in 2007 were, however, impacted by time spent positioning the SHIKRA for sale in the first quarter.

	•	Operating days:    We define operating days as the number of our available days in a period less the aggregate number of days that our vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a period during which vessels actually generate revenues.

	•	Fleet utilization:    We calculate fleet utilization by dividing the number of our operating days during a period by the number of our available days during the period. The shipping industry uses fleet utilization to measure a company’s efficiency in finding suitable employment for its vessels and minimizing the amount of days that its vessels are off-hire for reasons other than scheduled repairs or repairs under guarantee, vessel upgrades, special surveys or vessel positioning. Our fleet continues to perform at high utilization rates.

Revenues

All our vessels are employed on time charters. Our time charter equivalent (‘‘TCE’’) rate is equal to the time charter rate. As is common in the shipping industry, we pay commissions ranging from 1.25% to 6.25% of the total daily charter hire rate of each charter to unaffiliated ship brokers and in-house brokers associated with the charterers, depending on the number of brokers involved with arranging the charter.

Net revenues for the three-month period ended September 30, 2007 of $33,955,704 included billed time charter revenues of $36,934,096, deductions for brokerage commissions of $1,898,392 and amortization of net prepaid charter revenue of $1,080,000. Net revenues for the three-month period ended September 30, 2007 were 20% greater than net revenues for the three-month period ended September 30, 2006, primarily due to a larger fleet size as reflected by increased operating days and an increase in daily time charter rates. Net revenue for the three-month period ended September 30, 2006 of $28,358,830 included billed time charter revenues of $30,671,690, deductions for brokerage commissions of $1,587,860 and amortization of net prepaid and deferred charter revenue of $725,000.

Net revenues for the nine-month period ended September 30, 2007 of $89,202,283 included billed time charter revenues of $97,422,371, deductions for brokerage commissions of $4,980,088 and amortization of net prepaid charter revenue of $3,240,000. Net revenues for the nine-month period ended September 30, 2007 were 17% greater than net revenues for the nine-month period ended September 30, 2006, primarily due to a larger fleet size as reflected by increased operating days and an increase in daily time charter rates. Net revenue for the nine-month period ended September 30, 2006 of $76,254,265 included billed time charter revenues of $82,919,582, deductions for brokerage commissions of $4,229,817 and amortization of net prepaid and deferred charter revenue of $2,435,500.

Vessel Expenses

Vessel operating expenses include crew wages and related costs, the cost of insurance, expenses relating to repairs and maintenance, the cost of spares and consumable stores and related inventory,

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tonnage taxes, pre-operating costs associated with the delivery of acquired vessels including providing the newly acquired vessels with initial provisions and stores, and other miscellaneous expenses.

Vessel expenses for the three-month period ended September 30, 2007 were $6,647,223 compared to $6,118,038 in the three-month period ended September 30, 2006. The increase in vessel expense is attributable to a larger fleet size in operation for the third quarter of 2007 and increases in vessel crew and lubricants costs. Vessel expenses for the three-month period ended September 30, 2007 included $6,144,820 in vessel operating costs and $502,403 in technical management fees. For the three-month period ended September 30, 2006, vessel expenses included $5,231,420 in vessel operating costs, $410,353 in technical management fees, $213,636 in delivery and pre-operating costs, including costs for providing initial provisions, stores and spares and $262,629 in costs associated with vessel on-board inventory.

Vessel expenses for the nine-month period ended September 30, 2007 were $19,749,702 compared to $15,742,457 in the nine-month period ended September 30, 2006. The increase in vessel expense is attributable to a larger fleet size in operation for the nine-month period of 2007 and increases in vessel crew and lubricants costs. Vessel expenses for the nine-month period ended September 30, 2007 included $18,416,785 in vessel operating costs and $1,332,917 in technical management fees. For the nine-month period ended September 30, 2006, vessel expenses included $14,080,431 in vessel operating costs and $1,079,853 in technical management fees and $213,636 in delivery and pre-operating costs, including costs for providing initial provisions, stores and spares and $368,537 in costs associated with vessel on-board inventory.

Our vessel expenses will increase with the enlargement of our fleet. Other factors beyond our control, some of which may affect the shipping industry in general, may also cause these expenses to increase, including, for instance, developments relating to market prices for crew, insurance and petroleum-based lubricants and supplies.

Depreciation and Amortization

The cost of our vessels is depreciated on a straight-line basis over the expected useful life of each vessel. Depreciation is based on the cost of the vessel less its estimated residual value. We estimate the useful life of our vessels to be 28 years from the date of initial delivery from the shipyard to the original owner. Furthermore, we estimate the residual values of our vessels to be $150 per lightweight ton, which we believe is common in the dry bulk shipping industry. Our depreciation charges will increase as our fleet is enlarged which will lead to an increase in ownership days.

For the three-month periods ended September 30, 2007 and 2006, total depreciation and amortization expense were $7,241,927 and $5,980,747, respectively. Total depreciation and amortization expense for the three-month period ended September 30, 2007 includes $6,773,810 of vessel depreciation and $468,117 relating to the amortization of deferred drydocking costs. Comparable amounts for the three-month period ended September 30, 2006 were $5,775,804 of vessel depreciation and $204,943 of amortization of deferred drydocking costs.

For the nine-month periods ended September 30, 2007 and 2006, total depreciation and amortization expense were $19,079,511 and $15,737,990, respectively. Total depreciation and amortization expense for the nine-month period ended September 30, 2007 includes $18,008,485 of vessel depreciation and $1,071,026 relating to the amortization of deferred drydocking costs. Comparable amounts for the nine-month period ended September 30, 2006 were $15,222,940 of vessel depreciation and $515,050 of amortization of deferred drydocking costs.

Amortization of deferred financing costs is included in interest expense. These financing costs relate to costs associated with our revolving credit facility and these are amortized over the life of the facility. For the three-month periods ended September 30, 2007 and 2006, the amortization of deferred financing costs was $62,286 and $51,266, respectively. For the nine-month periods ended September 30, 2007 and 2006, the amortization of deferred financing costs was $180,070 and $117,491, respectively.

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General and Administrative Expenses

Our general and administrative expenses include onshore vessel administration related expenses such as legal and professional expenses and administrative and other expenses including payroll and expenses relating to our executive officers and office staff, office rent and expenses, directors fees, and directors and officers insurance.

General and administrative expenses for the three-month periods ended September 30, 2007 and 2006 were $1,570,980 and $1,266,905, respectively. The increase in general and administrative expenses for the three-month period ended September 30, 2007 was attributable to expenses associated with a larger fleet.

General and administrative expenses for the nine-month periods ended September 30, 2007 and 2006 were $4,787,974 and $3,366,408, respectively. The increase in general and administrative expenses for the nine-month period ended September 30, 2007 was attributable to expenses associated with a larger fleet. We expect general and administrative expenses to increase as we expand our fleet

Non-Cash Compensation Expense

For the three-month periods ended September 30, 2007 and 2006, the Company recorded non-cash compensation charges of $120,614 and $3,076,699 respectively. The expense for the three-month period ended September 30, 2007 relates to the fair value of the stock options granted in January 2007 to certain directors of the Company and members of management under the 2005 Stock Incentive Plan. The expense for the three-month period ended September 30, 2006 relates to profits interests awarded to members of the Company’s management by the Company’s then principal shareholder Eagle Ventures LLC.

For the nine-month periods ended September 30, 2007 and 2006, the Company recorded non-cash compensation charges of $3,504,193 and $5,768,355, respectively. The expense for the nine-month period ended September 30, 2007 includes $366,381 which relates to the stock options granted in January 2007 to members of management under the 2005 Stock Incentive Plan. The expense for the nine-month period ended September 30, 2006 includes $5,721,322 in non-cash, non-dilutive charges relating to profits interests awarded to members of the Company’s management by the Company’s former principal shareholder Eagle Ventures LLC, and a non-cash amount of $47,033 which relates to the stock options granted to certain directors of the Company under the 2005 Stock Incentive Plan.

On January 16, 2007, Eagle Ventures LLC (‘‘Eagle Ventures’’) sold 7,202,679 shares of the Company’s common shares in a secondary offering. The Company did not receive any proceeds from this offering. Based on the discretion of the compensation committee of Eagle Ventures, exercised in accordance with the Fifth LLC Agreement, Eagle Ventures redeemed and retired the common interests held by certain members in full liquidation of the common interests held by such members. The remaining proceeds received by Eagle Ventures will be retained until a future distribution is determined to be made by the compensation committee of Eagle Ventures. Future distributions of the remaining cash proceeds, and the proceeds received from the sale of the 127,778 common shares held by Eagle Ventures, will be distributed to the remaining members of Eagle Ventures, including an affiliate of Kelso and members of our management that hold profits int erests, in accordance with the Fifth LLC Agreement, as modified by the permitted discretion of the compensation committee of Eagle Ventures reflected in an amendment to the Fifth LLC Agreement.

These non-cash, non-dilutive charges relate to profits interests awarded to members of the Company’s management by the Company’s former principal shareholder, Eagle Ventures. These profits interests diluted only the interests of the owners of Eagle Ventures, and did not dilute the direct holders of the Company’s common shares. The non-cash compensation charge was recorded as an expense over the estimated service period in accordance with SFAS No. 123(R). The non-cash compensation charges were based on the fair value of the profits interests which were ‘‘marked to market’’ at the end of each reporting period. The impact of any changes in the estimated fair value of the profits interests were recorded as a change in estimate cumulative to the date of change. The expense relating to the profits interest is now fixed. There will be no charges in future periods. The

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Company’s Financial Statements for the year ended December 31, 2006 on Form 10-K includes a more detailed description of these profits interests.

On October 3, 2007 the Company granted 360,000 restricted stock units to members of its management which represent the right to receive one share of common stock as of the date of vesting with such vesting to occur ratably over three years at 331/3% on each yearly anniversary of the date of grant. The closing price of the Company’s stock on the date of the grant was $27.04.

Interest and Finance Costs

During the three-month period ended September 30, 2007, we borrowed a total of $225,462,500 from our current revolving credit facility which was used to fund the advances for the newbuilding vessels, capitalized borrowing costs and other costs associated with the newbuilding vessels.

During the nine-month period ended September 30, 2007, we borrowed a gross amount of $300,304,279 from its revolving credit facility and used $12,440,000 from the gross proceeds of the sale of the SHIKRA to repay borrowings from the revolving credit facility. Of these borrowings, $36,344,000 was used to partly fund the purchase of the three vessels, SHRIKE, SKUA and KITTIWAKE, which was delivered in the second quarter, $259,576,474 was used to fund the advances for the newbuilding vessels, and $4,383,805 was used to fund the capitalized borrowing costs and other costs associated with the newbuilding vessels.

At September 30, 2007, our debt consisted of $527,839,099 in borrowings under the revolving credit facility. These borrowings consisted of $238,704,000 for the 18 vessels currently in operation and $289,135,099 to fund the Company’s newbuilding program. Interest expense on the debt borrowed to fund the deposits and advances for the newbuilding vessels is capitalized (see below).

The revolving credit facility bears interest at the rate of 0.75% to 0.85% over LIBOR, depending upon the amount of debt drawn as a percentage of the value of the Company’s vessels. We also pay on a quarterly basis a commitment fee of 0.25% per annum on the undrawn amount of the facility.

For the three-month period ended September 30, 2007, interest rates applicable on our debt ranged from 4.97% to 6.56%, including the applicable margin. The weighted average effective interest rate was 5.95%. For the three-month period ended September 30, 2006, interest rates applicable on our debt ranged from 4.97% to 6.32%, including the applicable margin. The weighted average effective interest rate was 5.49%.

For the nine-month period ended September 30, 2007, interest rates applicable on our debt ranged from 4.97% to 6.56%, including the applicable margin. The weighted average effective interest rate was 5.68%. For the nine-month period ended September 30, 2006, interest rates applicable on our debt ranged from 5.17% to 6.29%, including the applicable margin. The weighted average effective interest rate was 5.37%.

Interest Expense, exclusive of capitalized interest, consists of:

			Three Months Ended												Nine Months Ended
			September 30, 2007						September 30, 2006						September 30, 2007						September 30, 2006
Loan Interest				$	3,340,888					$	2,986,183					$	9,247,055					$	6,720,658
Commitment Fees					73,803						142,887						362,416						525,860
Amortization of Deferred Financing Costs					62,286						51,266						180,070						117,491
Total Interest Expense				$	3,476,977					$	3,180,336					$	9,789,541					$	7,364,009

Capitalized Interest

For the three-month period ended September 30, 2007, interest expense on the debt borrowed to fund the deposits for the newbuilding vessels amounted to $3,256,349 ($3,208,775 in interest and $47,574 in amortization of financing expenses) and this amount has been capitalized as part of the cost of the newbuilding vessels and is included in Advances for Vessel Construction in the financial statements as of September 30, 2007.

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For the nine-month period ended September 30, 2007, interest expense on the debt borrowed to fund the deposits for the newbuilding vessels amounted to $4,613,023 ($4,493,578 in interest and $119,445 in amortization of financing expenses) and this amount has been capitalized as part of the cost of the newbuilding vessels and is included in Advances for Vessel Construction in the financial statements as of September 30, 2007.

Interest Rate Swaps

We have entered into interest rate swaps to effectively convert a portion of its debt from a floating to a fixed-rate basis. Under these swap contracts, exclusive of applicable margins, we pay fixed rate interest and receive floating-rate interest amounts based on three-month LIBOR settings. The swaps are designated and qualify as cash flow hedges.

As of September 30, 2007, the following swap contracts were outstanding:

	–	Notional amount of $100,000,000 with a fixed interest rate of 4.22% and maturity in September 2010

	–	Notional amount of $30,000,000 with a fixed interest rate of 4.54% and maturity in September 2010

	–	Notional amount of $84,800,000 with a fixed interest rate of 5.24% and maturity in September 2009

	–	Notional amount of $25,048,118 with a fixed interest rate of 4.74% and maturity in December 2011

	–	Notional amount of $25,776,443 with a fixed interest rate of 4.74% and maturity in March 2010

	–	Notional amount of $36,752,038 with a fixed interest rate of 5.22% and maturity in August 2012

	–	Notional amount of $202,340,000 with a fixed interest rate of 5.04% and maturity in August 2010

	–	Notional amount of $10,995,000 with a fixed interest rate of 4.98% and maturity in August 2010

We record the fair value of the interest rate swaps as an asset or liability on the balance sheet. The effective portion of the swap is recorded in accumulated other comprehensive income. Accordingly, a liability of $3,046,504 and an asset of $2,936,804 has been recorded in Other Assets and Other Liabilities, in the Company’s financial statements as of September 30, 2007 and December 31, 2006, respectively.

Foreign Currency Swaps

The shipping industry’s functional currency is the U.S. dollar. All our revenues and the majority of our operating expenses and the entirety of our management expenses are in U.S. dollars. Therefore, we do not use or intend to use financial derivatives to mitigate the risk of exchange rate fluctuations for our revenues and expenses.

However, we have entered into foreign exchange swap transactions to hedge foreign currency risks on our capital asset transactions (vessel newbuildings). The swaps are designated and qualify as cash flow hedges.

At December 31, 2006, we had outstanding foreign currency swap contracts for notional amounts aggregating 4.386 billion Japanese yen swapped into the equivalent of $42,310,465. During the nine-month period ended September 30, 2007, we swapped a total of 11.5 billion in Japanese yen currency exposure into the equivalent of $100,063,505. After giving effect to the deposits paid for the newbuildings, at September 30, 2007, our outstanding foreign currency swap contracts for notional amounts aggregated 11.280 billion Japanese yen swapped into the equivalent of $104,259,998.

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We record the fair value of the currency swaps as an asset or liability in our financial statements. The effective portion of the swap is recorded in accumulated other comprehensive income. Accordingly, an amount of $105,465 and $359,180 have been recorded in Other Liabilities in the accompanying financial statements as of September 30, 2007 and December 31, 2006, respectively.

Gain on Sale of Vessel

On February 27, 2007, we sold the SHIKRA, a 1984-built Handymax vessel, to an unrelated third party for $12,525,000. We incurred total expenses of $513,518 relating to the sale. We recorded a gain on the sale of $872,568.

EBITDA

EBITDA represents operating earnings before extraordinary items, depreciation and amortization, interest expense, and income taxes, if any. EBITDA is included because it is used by certain investors to measure a company’s financial performance. EBITDA is not an item recognized by GAAP and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. EBITDA is presented to provide additional information with respect to the Company’s ability to satisfy its obligations including debt service, capital expenditures, and working capital requirements. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other com panies due to differences in methods of calculation.

Our revolving credit facility permits us to pay dividends in amounts up to our earnings before extraordinary or exceptional items, interest, taxes, depreciation and amortization (Credit Agreement EBITDA), less the aggregate amount of interest incurred and net amounts payable under interest rate hedging agreements during the relevant period and an agreed upon reserve for dry-docking. Therefore, we believe that this non-GAAP measure is important for our investors as it reflects our ability to pay dividends. The following table is a reconciliation of net income, as reflected in the consolidated statements of operations, to the Credit Agreement EBITDA:

			Three Months Ended												Nine Months Ended
			September 30, 2007						September 30, 2006						September 30, 2007						September 30, 2006
Net Income				$	15,501,895					$	9,100,737					$	35,914,378					$	29,284,974
Interest Expense					3,476,977						3,180,336						9,789,541						7,364,009
Depreciation and Amortization					7,241,927						5,980,747						19,079,511						15,737,990
Amortization of Prepaid and Deferred Revenue					1,080,000						725,000						3,240,000						2,435,500
EBITDA					27,300,799						18,986,820						68,023,430						54,822,473
Adjustments for Exceptional Items:
Non-cash Compensation Expense(1)					120,614						3,076,699						3,504,193						5,768,355
Credit Agreement EBITDA				$	27,421,413					$	22,063,519					$	71,527,623					$	60,590,828

(1) Management’s participation in profits interests in Eagle Ventures LLC and stock options (see Notes to our financial statements)

Effects of Inflation

We do not believe that inflation has had or is likely, in the foreseeable future, to have a significant impact on vessel operating expenses, drydocking expenses or general and administrative expenses.

Liquidity and Capital Resources

Net cash provided by operating activities during the nine-month periods ended September 30, 2007 and 2006 was $62,587,594 and $52,123,412, respectively. The increase was primarily

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due to cash generated from the operation of the fleet for 4,417 operating days in the nine-month period ended September 30, 2007 compared to 3,734 operating days during the same period in 2006.

Net cash used in investing activities during the nine-month period ended September 30, 2007, was $391,953,782. During the nine-month period ended September 30, 2007, we purchased three modern Supramax vessels, the SHRIKE, SKUA and KITTIWAKE, for a total contract price of $138,700,000. We also incurred associated costs of $176,098 relating to these vessel acquisitions. During the nine-month period ended September 30, 2007, for our newbuilding program, we placed deposits in Japanese yen of an equiva lent $38,113,974 for three 56,000 deadweight ton vessels, the CROWNED EAGLE, CRESTED EAGLE and STELLAR EAGLE, which are to be constructed and delivered in November 2008, February 2009 and April 2009, respectively. These deposits are in addition to the deposits of $24,798,118 that were placed for the GOLDEN EAGLE and IMPE RIAL EAGLE in 2006. In addition, we advanced an aggregate of $221,462,500 in advances and shipyard deposits for the transaction involving 26 newbuilding vessels. We have also incurred associated capitalized interest costs of $4,493,579and capitalized other costs of $1,019,113. On February 12, 2007, we sold the SHIKRA, a 1984-built Handymax vessel, to an unrelated third party for $12,525,000 and we incurred total expenses of $513,518 relating to the sale.

Net cash provided by financing activities during the nine-month period ended September 30, 2007 was $462,037,833. In the nine-month period ended September 30, 2007, we received $239,848,266 in gross proceeds from the sale of common shares of the Company and we paid costs of $5,701,127 associated with the share sales. We borrowed $300,304,279 from our revolving credit facility, of which amount of $36,344,000 was used to partly fund the purchase of the three vessels,SHRIKE, SKUA and KITTIWAKE, which was deliv ered in the second quarter, $259,576,474 was used to fund the advances for the newbuilding vessels, and $4,383,805 was used to fund the capitalized borrowing costs and other costs associated with the newbuilding vessels. We used $12,440,000 from the gross proceeds of the sale of the SHIKRA to repay borrowings from the revolving credit facility. During the nine-month period ended September 30, 2007, we paid $58,771,405 in dividends. Net cash provided by financing activities during the nine-month period ended September 30, 2006, was $51,676,257 which primarily consisted of $33,000,000 in gross proceeds from a private placement of shares of the Company’s common stock, borrowings of $74,800,000 from the Company’s revolving credit facility, and payments of $53,420,500 in dividends.

As of September 30, 2007, our cash balance was $154,947,136 compared to a cash balance of $22,275,491 at December 31, 2006. In addition, $7,200,000 in cash deposits are maintained with our lender for loan compliance purposes and this amount is recorded in Restricted Cash in our financial statements as of September 30, 2007. The cash deposit amount at the end of December 31, 2006 was $6,400,000. Also recorded in Restricted Cash is an amount of $124,616 which is collateralizing a letter of credit relating to our office lease.

Our revolving credit facility has been amended and enhanced periodically to accommodate the newbuilding program. The incremental borrowings are subject to the same terms and conditions as the existing credit facility. As of September 30, 2007, total availability under the enhanced revolving credit facility was $600,000,000 of which $527,839,099 has been borrowed. The facility also provides us with the ability to borrow up to $15,000,000 for working capital purposes. Subsequent to the end of the third quarter, on October 19, 2007, the revolving credit facility was amended, restated and enhanced to $1,600,000 (See section entitled ‘‘Revolving Credit Facility’’ for a description of the facility and its amendments).

We anticipate that our current financial resources, together with cash generated from operations and, if necessary, borrowings under our revolving credit facility will be sufficient to fund the operations of our fleet, including our working capital requirements, for at least the next 12 months. Our amended and enhanced credit facility also provides us with the funds required to meet our newbuilding commitments. We were in compliance with all of the covenants contained in our debt agreements as of September 30, 2007.

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Dividends

Our current policy is to declare quarterly dividends to stockholders in March, May, August and November in amounts that are substantially equal to our available cash from operations during the previous quarter less any cash reserves for drydocking and working capital.

Our revolving credit facility permits us to pay quarterly dividends in amounts up to our quarterly earnings before extraordinary or exceptional items, interest, taxes, depreciation and amortization (Credit Agreement EBITDA), less the aggregate amount of interest incurred and net amounts payable under interest rate hedging agreements during the relevant period and an agreed upon reserve for drydocking for the period, provided that there is not a default or breach of loan covenant under the credit facility and the payment of the dividends would not result in a default or breach of a loan covenant. Depending on market conditions in the dry bulk shipping industry and acquisition opportunities that may arise, we may be required to obtain additional debt or equity financing which could affect our dividend policy.

On February 15, 2007, our Board of Directors declared a cash dividend for the fourth quarter of 2006 of $0.51 per share, based on 35,900,001 of the Company’s common shares outstanding, payable to all shareholders of record as of February 28, 2007. The aggregate amount of this cash dividend paid to our shareholders on March 2, 2007 was $18,309,000.

On April 18, 2007, our Board of Directors declared a cash dividend for the first quarter of 2007 of $0.50 per share based on 41,713,820 of the Company’s common shares outstanding, payable to all shareholders of record as of April 30, 2007. The aggregate amount of this cash dividend paid to our shareholders on May 3, 2007 was $20,856,910. Since we did not own the three vessels we agreed to acquire in the first quarter and did not receive the benefit of their revenues during the first quarter (the SHRIKE delivered on April 24, 2007 and SKUA and K ITTIWAKE delivered in September 2007), we funded approximately $2,850,000 of this dividend from excess working capital in order to pay the indicated dividend of $0.50 per share.

On July 18, 2007, our Board of Directors declared a cash dividend for the second quarter of 2007 of $0.47 per share, based on 41,713,820 of the Company’s common shares outstanding, payable to all shareholders of record as of August 1, 2007. The aggregate amount of this cash dividend paid to the Company’s shareholders on August 7, 2007 was $19,605,495.

Subsequent to the end of the third quarter, on November 7, 2007, the Company’s Board of Directors declared a cash dividend for the third quarter of 2007 of $0.50 per share, based on 46,727,153 of the Company’s common shares outstanding, payable to all shareholders of record as of November 21, 2007. The aggregate amount of this cash dividend payable to the Company’s shareholders on November 28, 2007, is $23,363,577.

Sale of Common Shares

On January 16, 2007, our then principal shareholder, Eagle Ventures LLC, sold 7,202,679 of the Company’s common shares from its holdings of the Company’s common stock in a secondary sale in a private placement. The Company did not receive any proceeds from this offering.

On March 6, 2007, we sold 5,400,000 of our common stock at a price to the public of $18.95 per share raising gross proceeds of $102,330,000. On March 23, 2007, we raised an additional $7,841,870 in gross proceeds from the underwriter’s exercise of their over-allotment option for the purchase of 413,819 of our common shares. We used the net proceeds from the offering to fund a portion of the acquisition costs of three vessels, the SHRIKE, SKUA and KITTIWAKE, which were delivered in the second quarter o f 2007.

On September 21, 2007, we sold 5,000,000 shares of our common stock in a secondary sale in a private placement at a price of $25.90 per share, raising gross proceeds of $129,500,000.

We have incurred fees and expenses aggregating $5,875,138 for these share sales.

Revolving Credit Facility

As of December 31, 2005, the outstanding indebtedness under the revolving credit facility was $140,000,000. In July 2006, we amended and increased our initial revolving credit facility to

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$450,000,000 with a new term of ten years expiring in July 2016. In November 2006, we further increased our facility to $500,000,000 to facilitate our newbuilding program. On May 4, 2007, the Company’s sole lender agreed to provide an incremental commitment of up to $250,000,000, in addition to its existing $500,000,000 credit facility under the same terms and conditions as the existing credit facility. We paid an arrangement fee of $50,000 to the lender in connection with the incremental commitment to the revolving credit facility. On July 24, 2007, the Company temporarily increased its revolving credit facility to $550,000,000 to facilitate the closing of the stock purchase transaction and acquire the rights to the 26 Supramax newbuilding contracts described herein. The Company incurred an arrangement fee of $250,000 in connection with the increase of the facility. On September 6, 2007, the Company temporarily increased its revolving credit facility to $600,000 ,000 to facilitate the funding of the newbuilding contracts. The Company incurred an arrangement fee of $30,000 in connection with the increase of the facility.     At September 30, 2007, we had borrowed $527,839,099 under this credit facility.

Subsequent to the end of the third quarter, on October 19, 2007, the Company’s $600,000,000 revolving credit facility with the Royal Bank of Scotland was amended, restated and increased to a facility amount of $1,600,000,000. The Company incurred an arrangement fee of $12,000,000 in connection with the increase of the facility. It will also pay the Bank an annual agency fee of $65,000.

The amended facility also provides us with the ability to borrow up to $20,000,000 for working capital purposes. There are no principal repayment obligations under the amended facility until July 2012. Over the remaining five years until maturity in July 2017, the facility will reduce in semi-annual amounts of $75,000,000 with a final reduction of $850,000,000 occurring simultaneously with the last semi-annual reduction.

The amended facility will bear interest at the rate of 0.80% to 0.90% 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 on the undrawn amount of the amended facility.

Our ability to borrow amounts under the amended revolving credit facility will be subject to the satisfaction of certain customary conditions precedent and compliance with terms and conditions included in the loan documents. In connection with vessel acquisitions, amounts borrowed may not exceed 75% of the value of the vessels securing our obligations under the credit facility. Our ability to borrow such amounts, in each case, is subject to our lender’s approval of the vessel acquisition. Our lender’s approval will be based on the lender’s satisfaction of our ability to raise additional capital through equity issuances in amounts acceptable to our lender and the proposed employment of the vessel to be acquired.

Our obligations under the amended revolving credit facility are secured by a first priority mortgage on each of the vessels in our fleet and such other vessels that we may from time to time include with the approval of our lender, and by a first assignment of all freights, earnings, insurances and requisition compensation relating to our vessels. The facility also limits our ability to create liens on our assets in favor of other parties.

The revolving credit facility, as amended, contains financial covenants requiring us, among other things, to ensure that:

	•	the aggregate market value of the vessels in our fleet that secure our obligations under the revolving credit facility, as determined by an independent shipbroker on a charter free basis, at all times exceeds 130% of the aggregate principal amount of debt outstanding under the new credit facility and the notional or actual cost of terminating any related hedging arrangements;

	•	we maintain an adjusted net worth, i.e., total assets less consolidated debt of an amount not less than $300,000,000 during any accounting period;

	•	our EBITDA, as defined in the credit agreement, will at all times be not less than 2x the aggregate amount of interest incurred and net amounts payable under interest rate hedging arrangements during the relevant period; and

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	•	we maintain with the lender $500,000 per delivered vessel

For the purposes of the revolving credit facility, our ‘‘total assets’’ includes our tangible fixed assets and our current assets, as set forth in our consolidated financial statements, except that the value of any vessels in our fleet that secure our obligations under the facility are measured by their fair market value rather than their carrying value on our consolidated balance sheet.

The revolving credit facility permits us to pay dividends in amounts up to our earnings before extraordinary or exceptional items, interest, taxes, depreciation and amortization (EBITDA), less the aggregate amount of interest incurred and net amounts payable under interest rate hedging agreements during the relevant period and an agreed upon reserve for dry-docking, provided that there is not a default or breach of loan covenant under the credit facility and the payment of the dividends would not result in a default or breach of a loan covenant.

Contractual Obligations    

The following table sets forth our expected contractual obligations and their maturity dates as of September 30, 2007:    

(in thousands of U.S. dollars)			Within One Year						One to Three Years						Three to Five Years						More than Five years						Total
Vessels(1)				$	156,608					$	489,424					$	333,515											$	979,548
Bank Loans					—						—						—					$	527,839						527,839
Interest and borrowing fees(2)					30,337						60,509						60,592						143,729						295,167
Office lease(3)					250						501						125						—						876
Total				$	187,196					$	550,434					$	394,232					$	671,568					$	1,803,430

(1) The balance of the contract price in US dollars for the 31 newbuilding vessels which are to be constructed and delivered between August 2008 and April 2012.

(2) The Company is a party to floating-to-fixed interest rate swaps covering notional amounts of $100,000,000, $30,000,000, $84,800,000, $25,048,118, $25,776,443, $37,752,038, $10,995,000 and $202,340,000 as of September 30, 2007 that effectively convert the Company’s interest rate exposure from a floating rate based on LIBOR to a fixed rate of 4.22%, 4.54%, 5.24%, 4.74%, 4.90%, 5.22%, 4.98% and 5.04% respectively, plus applicable margin. Interest and borrowing fees includes capitalized interest for the newbuilding vessels.

(3) Remainder of the 63-month lease on the office space which we occupy.

Capital Expenditures

Our capital expenditures relate to the purchase of vessels and capital improvements to our vessels which are expected to enhance the revenue earning capabilities and safety of these vessels.

During the nine-month period ended September 30, 2007, we acquired three Supramax vessels, the SHRIKE, SKUA and KITTIWAKE, for a total contract price of $138,700,000 and associated costs of $176,098. During the nine-month period ended September 30, 2007, for our newbuilding program, we placed deposits in Japanese yen of the equivalent of $38,113,974 for three 56,000 deadweight ton vessels, the CROWNED EAGLE, CRESTE D EAGLE and STELLAR EAGLE, which are to be constructed and delivered in November 2008, February 2009 and April 2009, respectively. These deposits are in addition to the $24,798,118 that was placed for the GOLDEN EAGLE and IMPERIAL EAGLE in 2006. In addition, we have acquired contracts for the construction of 26 Supramax vessels for an aggregate acquisition price of approximately $1,100,000,000. As of September 30, 2007, we have advanced an aggregate amount of $259,576,474 to fund the acquisition costs and shipyard deposits for the newbuilding vessels. As of September 30, 2007 for the newbuilding program, the Company has capitalized interest costs of $4,872,603 and other costs of $1,152,356.

In addition to acquisitions that we may undertake in future periods, the Company’s other major capital expenditures include funding the Company’s maintenance program of regularly scheduled

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drydocking necessary to preserve the quality of our vessels as well as to comply with international shipping standards and environmental laws and regulations. Although the Company has some flexibility regarding the timing of its dry docking, the costs are relatively predictable. Management anticipates that vessels are to be drydocked every two and a half years. Funding of these requirements is anticipated to be met with cash from operations. We anticipate that this process of recertification will require us to reposition these vessels from a discharge port to shipyard facilities, which will reduce our available days and operating days during that period.

Drydocking costs incurred are amortized to expense on a straight-line basis over the period through the date the next drydocking for those vessels are scheduled to occur. For the three-month period ended September 30, 2007, three of our vessels passed drydock surveys. During the corresponding period in 2006 we drydocked two vessels. For the nine-month periods ended September 30, 2007 and 2006, we spent $2,972,553 and $2,269,422, respectively on vessel drydockings. The following table represents certain information about the estimated costs for anticipated vessel drydockings in the next four quarters, along with the anticipated off-hire days:

Quarter Ending			Off-hire Days(1)						Projected Costs(2)
December 31, 2007					15				$0.45 million
March 31, 2008					15				$0.50 million
June 30, 2008					30				$1.00 million
September 30, 2008					60				$2.00 million

(1) Actual duration of drydocking will vary based on the condition of the vessel, yard schedules and other factors.

(2) Actual costs will vary based on various factors, including where the drydockings are actually performed.

Off-balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

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Item 3.	Quantitative and Qualitative Disclosures about Market Risk

Interest Rate Risk

There have been no material changes from the ‘‘Interest Rate Risk’’ previously disclosed in our Form 10-K for the year ended December 31, 2006.

Currency and Exchange Rates

The shipping industry’s functional currency is the U.S. dollar. The Company generates all of its revenues in U.S. dollars. The majority of the Company’s operating expenses and the entirety of its management expenses are in U.S. dollars. The Company does not intend to use financial derivatives to mitigate the risk of exchange rate fluctuations for its revenues and expenses.

The Company has entered into foreign exchange swap transactions to hedge foreign currency risks on its capital asset transactions (vessel newbuildings). The swaps are designated and qualify as cash flow hedges. In 2006, the Company entered into foreign exchange swap transactions to hedge the Japanese yen exposure into US dollars for the purchase price in Japanese yen of two new-build vessels, the GOLDEN EAGLE and IMPERIAL EAGLE, which are expected to be constructed and delivered to the Company in January 2010 and February 2010. After giving effect to the deposits paid on these newbuildings, at December 31, 2006, the Company had outstanding foreign currency swap contracts for notional amounts aggregating 4.386 billion Japanese yen swapped into the equivalent of $42,310,465.

During the nine-month period ended September 30, 2007, the Company entered into foreign exchange swap transactions to hedge the Japanese yen exposure into US dollars for the purchase price in Japanese yen of three new-build vessels, the CROWNED EAGLE, CRESTED EAGLE and STELLAR EAGLE, which are expected to be delivered to the Company in November 2008, February 2009 and April 2009, respectively. During this nine-month period, the Company swapped a total of 11.5 billion in Japanese yen currency exposure into the equivalent of $100,063,505.

After giving effect to the deposits paid for the newbuildings, at September 30, 2007, the Company had outstanding foreign currency swap contracts for notional amounts aggregating 11.280 billion Japanese yen swapped into the equivalent of $104,259,998.

The Company records the fair value of the currency swaps as an asset or liability in its financial statements. The effective portion of the swap is recorded in accumulated other comprehensive income. Accordingly, an amount of $105,465 and $359,180 have been recorded in Other Liabilities in the accompanying financial statements as of September 30, 2007 and December 31, 2006, respectively.

Item 4.	Controls and Procedures

Disclosure Controls and Procedures

Our management, including our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, (the ‘‘Exchange Act’’)) as of the end of the period covered by this report. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective.

Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II: OTHER INFORMATION

Item 1 — Legal Proceedings

We are not aware of any legal proceedings or claims to which we or our subsidiaries are party or of which our property is subject. From time to time in the future, we may be subject to legal proceedings and claims in the ordinary course of business, principally personal injury and property casualty claims. Those claims, even if lacking merit, could result in the expenditure by us of significant financial and managerial resources.

Item 1A — Risk Factors

There have been no material changes from the ‘‘Risk Factors’’ previously disclosed in our Form 10-K for the year ended December 31, 2006.

Item 2 — Unregistered Sales of Equity Securities and Use of Proceeds

On January 12, 2007, the Company granted 13,334 shares of the Company’s stock in options to its independent non-employee directors and 524,000 of the Company’s stock in options to its management. These options have an exercise price of $17.80 and became exercisable for the non-employee directors on the grant date while the options for management vest and become exercisable over three years. All options expire ten years from the date of grant.

On March 17, 2006, the Company granted 56,666 shares of the Company’s stock in options to its independent non-employee directors. These options vested and became exercisable on the grant date at an exercise price of $13.23 per share. In August 2007, the Company issued 13,333 shares pursuant to exercises of these options. All options expire ten years from the date of grant.

On October 3, 2007 the Company granted 360,000 restricted stock units to members of its management which represent the right to receive one share of common stock as of the date of vesting with such vesting to occur ratably over three years at 331/3% on each yearly anniversary of the date of grant. The closing price of the Company’s stock on the date of the grant was $27.04.

Item 3 — Defaults upon Senior Securities    

None.

Item 4 — Submission of Matters to a Vote of Security Holders

None.

Item 5 — Other Information

None.

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Item 6 — Exhibits

EXHIBIT INDEX

	3	.1				Amended and Restated Articles of Incorporation of the Company*
	3	.2				Amended and Restated Bylaws of the Company*
	10	.1				Form of Restricted Stock Unit Award Agreement
	31	.1				Rule 13a-14(d) / 15d-14(a)_Certification of CEO
	31	.2				Rule 13a-14(d) / 15d-14(a)_Certification of CFO
	32	.1				Section 1350 Certification of CEO
	32	.2				Section 1350 Certification of CFO

* Incorporated by reference to the Registration Statement on Form S-1, Registration No. 333-123817.

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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.

EAGLE BULK SHIPPING INC.

By: /s/ Sophocles N. Zoullas                    
        Sophocles N. Zoullas
        Chairman of the Board and
        Chief Executive Officer

Date:    November 9, 2007

By: /s/ Alan S. Ginsberg                        
        Alan S. Ginsberg
        Chief Financial Officer
        and Treasurer

Date:    November 9, 2007    

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EX-10.1

Exhibit 10.1

RESTRICTED STOCK UNIT AWARD AGREEMENT

UNDER THE EAGLE BULK SHIPPING, INC.

2005 STOCK INCENTIVE PLAN

This Award Agreement (this “RSU Award Agreement”), dated as of                     ,          (the “Date of Grant”), is made by and between Eagle Bulk Shipping Inc., a Republic of the Marshall Islands company (the “Company”), and                                 (the “Participant”). Capitalized terms not defined herein shall have the meaning ascribed to them in the Eagle Bulk Shipping Inc., 2005 Stock Incentive Plan (the “Plan”). Where the context permits, references to the Company shall include any successor to the Company.

1. Grant of Restricted Share Units. The Company hereby grants to the Participant                                      restricted stock units (the “RSUs”), subject to all of the terms and conditions of this RSU Award Agreement and the Plan.

2. Form of Payment and Vesting. Each RSU granted hereunder shall represent the right to receive one (1) share of Common Stock as of the date of vesting, with such vesting to occur ratably over three (3) years at 33¹/₃% on each yearly anniversary of the date of grant, provided that no vesting shall occur after the termination of the Participant’s employment or service with the Company.

3. Restrictions.

(a) The RSUs granted hereunder may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of or encumbered, and shall be subject to a risk of forfeiture as described in Section 2 and until any additional requirements or restrictions contained in this RSU Award Agreement or in the Plan have been otherwise satisfied, terminated or expressly waived by the Company in writing.

(b) Upon the vesting of the RSUs, the shares subject to the RSUs shall be issued hereunder (provided, that such issuance is otherwise in accordance with federal and state securities laws) as soon as practicable thereafter, but in any case within two and one-half months after the taxable year (of the Participant or of the Company whichever is later) in which such vesting occurred.

4. Termination of Employment or Service.

(a) For Cause. If the Participant has a Termination of Affiliation for Cause, all of the Participant’s unvested RSUs shall be forfeited as of such date.

(b) On Account of Death or Disability. If the Participant has a Termination of Affiliation on account of death or Disability, then the Participant’s unvested RSUs shall vest and the shares subject to such RSUs shall be issued hereunder (provided, that such issuance is otherwise in accordance with federal and state securities laws) as soon as practicable thereafter, but in any case within two and one-half months after the taxable year (of the Participant or of the Company whichever is later) in

1

which such termination occurred.

(c) Any Other Reason. If the Participant has a Termination of Affiliation for any reason other than for Cause, death, or Disability, then the Participant’s unvested RSUs, shall be forfeited as of such date.

5. Voting; Dividend Equivalents. The Participant shall have no rights of a shareholder (including the right to distributions or dividends) until shares of Common Stock are issued pursuant to the terms of this RSU Award Agreement; provided, however, that the Participant shall receive payment of dividend equivalents with respect to the number of shares of Common Stock subject to the RSUs then held by him, to be paid in the same form as, and as soon as practicable following the same date as (but in any case within two and one-half months after the taxable year (of the Participant or of the Company whichever is later) in which such dividend is declared) the dividend is paid to holders of shares of Common Stock. Notwithstanding the foregoing, if the Participant has a Termination of Affiliation and some or all of his RSUs are forfeited in connection with said Termination of Affiliation, the Participant shall repay to the Company the amount of any dividend equivalents previously paid to him in respect to such forfeited RSUs.

6. RSU Award Agreement Subject to Plan. This RSU Award Agreement is made pursuant to all of the provisions of the Plan, which is incorporated herein by this reference, and is intended, and shall be interpreted in a manner, to comply therewith. In the event of any conflict between the provisions of this RSU Award Agreement and the provisions of the Plan, the provisions of the Plan shall govern.

7. No Rights to Continuation of Employment. Nothing in the Plan or this RSU Award Agreement shall confer upon Participant any right to continue in the employ of the Company or any Subsidiary thereof or shall interfere with or restrict the right of the Company or its shareholders (or of a Subsidiary or its shareholders, as the case may be) to terminate Participant’s employment any time for any reason whatsoever, with or without cause.

8. Tax Withholding. The Company shall be entitled to require a cash payment by or on behalf of the Participant and/or to deduct from other compensation payable to the Participant any sums required by federal, state or local tax law to be withheld or to satisfy any applicable payroll deductions with respect to the payment of any RSU.

9. Section 409A Compliance. Notwithstanding anything to the contrary contained in this RSU Award Agreement, to the extent that the Board determines that the Plan or the RSU is subject to Section 409A of the Code and fails to comply with the requirements of Section 409A of the Code, the Board reserves the right (without any obligation to do so) to amend or terminate the Plan and/or amend, restructure, terminate or replace the RSU in order to cause the RSU to either not be subject to Section 409A of the Code or to comply with the applicable provisions of such section.

10. Governing Law. This RSU Award Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the internal laws, and not the laws pertaining to conflicts or choices of laws, of the State of New York applicable to agreements made and to be performed wholly within the State ofNew York.

2

11. RSU Award Agreement Binding on Successors. The terms of this RSU Award Agreement shall be binding upon Participant and upon Participant’s heirs, executors, administrators, personal representatives, transferees, assignees and successors in interest, and upon the Company and its successors and assignees, subject to the terms of the Plan.

12. No Assignment. Notwithstanding anything to the contrary in this RSU Award Agreement, neither this RSU Award Agreement nor any rights granted herein shall be assignable by Participant.

13. Necessary Acts. Participant hereby agrees to perform all acts, and to execute and deliver any documents that may be reasonably necessary to carry out the provisions of this RSU Award Agreement, including but not limited to all acts and documents related to compliance with federal and/or state securities and/or tax laws.

14. Entire RSU Award Agreement. This RSU Award Agreement and the Plan contain the entire agreement and understanding among the parties as to the subject matter hereof.

15. Headings. Headings are used solely for the convenience of the parties and shall not be deemed to be a limitation upon or descriptive of the contents of any such Section.

16. Counterparts. This RSU Award Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.

17. Amendment. No amendment or modification hereof shall be valid unless it shall be in writing and signed by all parties hereto.

IN WITNESS WHEREOF, the parties hereto have executed this RSU Award Agreement as of the date set forth above.

EAGLE BULK SHIPPING, INC.

By

Print Name:

Title:

The undersigned hereby accepts and agrees to all the terms and provisions of the foregoing RSU Award Agreement.

PARTICIPANT

Signature

Print Name:

Address:

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EX-31.1

Exhibit 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

I, Sophocles Zoullas, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Eagle Bulk Shipping Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.	The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

	a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 9, 2007

/s/ Sophocles Zoullas                    
Sophocles Zoullas
Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

I, Alan Ginsberg, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Eagle Bulk Shipping Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

	b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

	c)	evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.	The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

	a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

	b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 9, 2007

/s/ Alan Ginsberg                    
Alan Ginsberg
Chief Financial Officer

EX-32.1

Exhibit 32.1

PRINCIPAL EXECUTIVE OFFICER CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the quarterly report of Eagle Bulk Shipping Inc. (the ‘‘Company’’) on Form 10-Q for the quarter ended September 30, 2007, as filed with the Securities and Exchange Commission (the ‘‘SEC’’) on or about the date hereof (the ‘‘Report’’), I, Sophocles Zoullas, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

	(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

Date: November 9, 2007

/s/ Sophocles Zoullas                
Sophocles Zoullas
Chief Executive Officer

EX-32.2

Exhibit 32.2

PRINCIPAL FINANCIAL OFFICER CERTIFICATION
PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the quarterly report of Eagle Bulk Shipping Inc. (the ‘‘Company’’) on Form 10-Q for the quarter ended September 30, 2007 as filed with the Securities and Exchange Commission (the ‘‘SEC’’) on or about the date hereof (the ‘‘Report’’), I, Alan Ginsberg, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

	(1)	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

Date: November 9, 2007

/s/ Alan Ginsberg                
Alan Ginsberg
Chief Financial Officer