Overseas Shipholding receives final approval for two DIP facilities

By Jim Witters

Wilmington, Del., Feb. 5 - Overseas Shipholding Group, Inc. received final approval for $25 million in debtor-in-possession financing facilities from the Export-Import Bank of China and from Danish Ship Finance A/S, as well as the continued use of the lenders' cash collateral.

The approvals came during a Feb. 5 hearing in the U.S. Bankruptcy Court for the District of Delaware.

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. under the Cexim DIP.

And 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. under the DSF DIP.

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

The DSF borrowers will use proceeds for payments required under the former adequate protection order, which was converted to a cash collateral order with the Feb. 5 court order.

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

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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