NEW YORK--(BUSINESS WIRE)--Overseas Shipholding Group, Inc. (“OSG” or the “Company”) today announced that it has emerged from Chapter 11 as a newly reorganized company. OSG emerges 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. I want to thank our extraordinary employees, both at sea and ashore, who have been vital to our successful restructuring. We also appreciate the continued support of our valued partners, suppliers and customers who have been critical to our success throughout this process and whom we look forward to continue working with into the future.”
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 (the “Plan”), 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. The term financing funded cash payment of obligations under the terms of the Plan and the revolvers provide additional liquidity to fund operations post-emergence.
The Company 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. The Company plans to issue a press release when trading in these markets has commenced. In addition, the Company has entered into a registration rights agreement with certain commitment parties in connection with their holdings of Class A common stock and Class A warrants, and plans to file a registration statement in connection with its obligations thereunder.
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.
Additional information regarding OSG’s Plan of Reorganization and its Chapter 11 proceedings may be found at http://www.osg.com, the Company’s website. Cleary Gottlieb Steen & Hamilton LLP and Morris Nichols Arsht & Tunnell LLP are serving as legal advisors. Chilmark Partners LLC is serving as the Company’s financial advisor and Greylock Partners LLC is serving as its restructuring advisor.
Overseas Shipholding Group, Inc. is a publicly traded tanker company providing energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets. OSG is committed to setting high standards of excellence for its quality, safety and environmental programs. OSG is headquartered in New York City, NY. More information is available at www.osg.com.
This release contains forward-looking statements. These statements are based on OSG management's current expectations and assumptions and are subject to a number of risks, uncertainties and other factors, many of which are beyond the control of OSG, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Statements about management's expectations are based on current assumptions and expectations. No assurance can be made that these events will come to fruition. Factors, risks and uncertainties that could cause actual results to differ from the expectations reflected in these forward-looking statements are described in OSG’s report on Form 10-Q for the quarter ended June 30, 2014. The Company disclaims any obligation to update any forward-looking statements.