OSG Coming Out Of Chapter 11; AMSC Agreements Unaffected
Oslo, 22 July 2014
On Friday, 18 July 2014, the Delaware Bankruptcy Court confirmed the proposed Plan of Reorganization of Overseas Shipholding Group, Inc. ("OSG"). Under the terms of the plan, all existing agreements between American Shipping Company ASA ("AMSC") and OSG will be assumed and accepted by OSG on the effective date of the plan.
"We are pleased to see OSG coming out of Chapter 11 and look forward to working with our old partners to capitalize on the opportunities in the Jones Act tanker markets," said Dag Wittusen, CEO of AMSC.
Since filing for bankruptcy on 14 November 2012, OSG has continued to fully perform its obligations to AMSC under the bareboat charters and the other agreements between the parties. In addition, in connection with its decision to convert the Overseas Tampa to a shuttle tanker for time charter to Shell, OSG has previously assumed and accepted the bareboat charter and the other transaction documents related to the Overseas Tampa, and the fixed term of the bareboat charter for the Overseas Tampa was extended to the later of 16 April 2024 or the expiration of the initial period of the time charter of the vessel to Shell. Conversion work on the Overseas Tampa began in June 2014 and is expected to be completed in August 2014.
The Bankruptcy Court's order confirming OSG's plan of reorganization will become a final order when the appeal period expires on August 1, 2014 (provided no appeal is filed). Once the court's order becomes final, there are steps remaining before the plan will become effective, including closing by OSG of its exit financing and completion of its rights offering process. It is currently anticipated that OSG's plan of reorganization will become effective prior to the end of August 2014. Details on and copies of OSG's confirmed plan of reorganization can be found at http://www.kccllc.net/osg
About American Shipping Company ASA:
AMSC is a shipowning company with ten modern handy size product tankers on long term bareboat charter with Overseas Shipholding Group (OSG). OSG charters the vessels out on time charters to major oil companies in the U.S. coastwise Jones Act trade. AMSC has a significant contract backlog as well as a profit sharing agreement with OSG which offers visibility with respect to future earnings and potential dividend capacity. The Company has an ambition to pay attractive and growing dividends to its shareholders.
Contacts at American Shipping Company ASA:
Dag Fasmer Wittusen, CEO
Oslo, Norway
Tel: +47 916 300 02
Pål Magnussen, CFO
Oslo, Norway
Tel: +47 905 45 959
Leigh Jaros, Business Controller/Finance Manager
Pennsylvania, USA
Tel: +1 (484) 880- 3741