New Start for OSG as It Exits Chapter 11

Tanker company Overseas Shipholding Group, Inc. (OSG) announced yesterday that it has emerged from Chapter 11 as a newly reorganized company.

According to the announcement, OSG emerged with a strong balance sheet, focused strategy and solid customer base.

“Today marks the start of a new beginning for our company,” said Captain Bob Johnston, President and Chief Executive Officer of OSG. “We are completing this process having resolved the issues that led to our decision to seek Chapter 11 protection.”

John Ray, OSG’s post-confirmation Chairman of the Board added, “Through our financial and operational restructuring, we have focused on creating a competitive structure to allow us considerable flexibility to grow the business while continuing to provide our customers with the high-quality service that they expect.”

Under the terms of the confirmed Amended Plan of Reorganization, senior lenders were paid in full, and all allowed administrative claims and certain other allowed secured and unsecured claims are paid in full or unimpaired.

Today, the company successfully closed on its Exit Financing agreement, led by Jefferies Finance LLC, which consists of two term loan facilities and two revolving loan facilities, totaling $1.35 billion.

New Start for OSG as It Exits Chapter 111 OSG expects to apply to list its Class B common stock on the New York Stock Exchange and anticipates that the Class A common stock and both the Class A warrants and Class B warrants will be quoted in the over-the-counter market.

OSG filed for bankruptcy protection in November 2012 in the U.S. Bankruptcy Court for the District of Delaware.

The Bankruptcy Court confirmed OSG’s final Amended Plan of Reorganization on July 18, 2014, and the appeal period expired on August 1, 2014.

Press Release, August 6, 2014

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