Overseas Shipholding Group Inc, the world’s No. 2 independent tanker operator by fleet size, said it was evaluating options including filing for bankruptcy protection and may have to restate results for at least three years, Reuters reports.
Shares of the company, which had estimated debt obligations of $2.24 billion as of June 30, fell as much as 66 percent to a life low of $1.02 on Monday morning.
The stock lost more than a third of its value last week on speculation that talks with lenders had stalled. Shares of Nordic American Tanker Ltd , Teekay Tankers Ltd , DHT Holdings Inc and Top Ships Inc were down between 3 percent and 8 percent.
Facing a looming $1.5 billion maturity on its main credit line next February, Overseas Shipholding Group (OSG.N) has hired Chilmark Partners and Proskauer Rose for financial and legal advice, respectively, regarding a potential Chapter 11 filing, according to multiple sources.The lenders behind the credit line have retained Lazard and White & Case to prepare for potential restructuring talks.
Source: Reuters
