Overseas Shipholding debtors to get $25 million in intercompany loans

By Caroline Salls

Pittsburgh, Jan. 4 - Overseas Shipholding Group, Inc. requested court approval of a total of $25 million in financing for two groups of debtors, according to Thursday filings with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, OSG International, Inc. will provide $15 million in intercompany post-bankruptcy financing to debtors Delta Aframax Corp., Epsilon Aframax Corp., Front President, Inc., Maple Tanker Corp. and Oak Tanker Corp. (the Cexim borrowers).

In addition, OSG International will provide $10 million in financing to debtors 1372 Tanker Corp., Alcesmar Ltd., Alcmar Ltd., Andromar Ltd., Antigmar Ltd., Ariadmar Ltd., Shirley Tanker Srl, Samar Tanker Corp., Leyte Product Tanker Corp. and Rosalyn Tanker Corp. (the DSF borrowers).

The Cexim borrowers will use proceeds from the facility for payments required under their cash collateral order.

Meanwhile, the DSF borrowers will use proceeds for payments required under an adequate protection order.

Both loans will mature on Dec. 31, 2014. Interest will accrue at the applicable rate plus 100 basis points.

A hearing is scheduled for Jan. 24.

Overseas Shipholding, a New York-based tanker company, filed for bankruptcy on Nov. 14. The Chapter 11 case number is 12-20000.

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