Overseas Shipholding may file for bankruptcy

Mon Oct 22, 2012 12:05pm EDT
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By Divya Lad and Swetha Gopinath

(Reuters) - Debt-laden Overseas Shipholding Group Inc (OSG.N: Quote), 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.

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 (NAT.N: Quote), Teekay Tankers Ltd TNK.N, DHT Holdings Inc (DHT.N: Quote) and Top Ships Inc (TOPS.O: Quote) were down between 3 percent and 8 percent.

Financial statements for at least the three years ended December 2011 should no longer be relied on, Overseas Shipholding said in a regulatory filing on Monday.

Overseas Shipholding said it was reviewing a tax issue arising from the fact that while the company is domiciled in the United States, it has substantial international operations.

Allen Andreas, a director and member of the audit committee, resigned on September 27 over disagreements with the board in reviewing the tax issue, the company said in a filing.

The New York-based company had yet to determine if it would need to restate its results for the years in question.   Continued...