Eagle Bulk Shipping Inc's shares shot up to as much as $15.46 from 68 cents as the company cut its borrowings by about 80 percent after converting debt into equity under a financial restructuring program.

The stock was the top percentage gainer on the Nasdaq, with more than 14.4 million shares being traded by 11.46 a.m. ET, over 10 times their 10-day daily average volume.

Excess capacity in the past couple of years has forced several shipping companies to file for bankruptcy, including Genco Shipping & Trading Ltd, Overseas Shipholding Group Inc and Nautilus Holdings Ltd.

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, has fallen by about 50 percent in the past year.

Eagle Bulk's debt declined by about $1 billion after the restructuring, the company said in a statement on Wednesday.

The New York-based company had total debt of $1.19 billion as of June 30, according to a regulatory filing.

Eagle Bulk also said it secured a new $275 million exit financing facility, comprising a $225 million term loan and a $50 million revolving credit facility.

Eagle Bulk's shares were at $14.73 in noon trading.

Up to Wednesday's close, the stock had fallen nearly 47 percent since August 5, a day before the company filed for bankruptcy.

(Reporting by Narottam Medhora in Bangalore; Editing by Kirti Pandey)