Reuters: Bankruptcy News: UPDATE 1-Overseas Shipholding Group files for bankruptcy

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UPDATE 1-Overseas Shipholding Group files for bankruptcy Nov 14th 2012, 13:34 Wed Nov 14, 2012 8:34am EST Nov 14 (Reuters) - Debt-laden Overseas Shipholding Group Inc , the world's No. 2 independent tanker operator by fleet size, filed for Chapter 11 bankruptcy protection on Wednesday, after talks with its lenders floundered. The company, whose stock fell 61 percent in premarket trading, said it had more-than-adequate cash to continue operating as usual and did not require debtor-in-possession financing. Overseas Shipholding warned last month that it may seek bankruptcy protection and that it may have to re-state results for at least three years after it uncovered a tax issue. The tanker operator has been struggling to plug a funding gap of $300 million ahead of the maturity of a $1.5 billion revolving loan next February and had arranged a replacement facility of $900 million. Overseas Shipholding, whose market value had dwindled to $34.93 million as of Tuesday, had cash and equivalents of $226.6 million as of June 30, according to Thomson Reuters data. On Wednesday, the company listed total assets of $4.15 billion and liabilities of $2.67 billion as of June 30. It had said in August that it was in discussions with its main banks, including DnB NOR Bank, Swedbank AB , Citibank NA, HSBC Bank Plc and Credit Agricole Corporate and Investment Bank. Weak rates and high bunker fuel costs have forced many shipping companies to restructure, including Norway-listed Frontline, Italy's Deiulemar Shipping, Indonesia's Berlian Laju Tanker and Sanko Steamship in Japan. The case is In re: Overseas Shipholding Group Inc, U.S. Bankruptcy Court, District of Delaware, No:12-20000 Link this Share this Digg this Email Reprints

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