Overseas Shipholding to sell vessels, requests exclusivity extension

By Caroline Salls

Pittsburgh, Feb. 15 - Overseas Shipholding Group, Inc. requested court approval of the bid procedures for the proposed sale of the rights, titles and interests in the Overseas Equatorial, Overseas Sovereign and Overseas Maremar vessels, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said the vessels have been well maintained and "have ample capacity to continue to operate and generate revenue." However, Overseas Shipholding said it has decided that the vessels do not suit its business plan and are unnecessary for its ongoing operations.

Since the assets are well known within the market, the company said interested buyers are not likely to need a stalking horse bid to aid proper valuation of the vessels.

As a result, Overseas Shipholding said it will offer the assets for sale without a traditional stalking horse bid or formal auction process.

Bids are due by March 21. The company would file a notice of successful bid with the court by April 11.

The sale hearing is currently scheduled for April 25.

In addition, Overseas Shipholding requested an extension of its exclusive periods for filing and soliciting votes on a plan of reorganization, according to a separate Thursday court filing.

Specifically, the company wants to extend its exclusive filing period through Aug. 2 from March 14 and the solicitation period through Oct. 1, 2013 from May 13.

Overseas said it needs the extra time to allow it to continue to develop a Chapter 11 plan in consultation with its creditors and solicit acceptances.

The company also cited the size and complexity of its bankruptcy case.

Hearings on the sale procedures and the exclusivity extension are scheduled for March 5.

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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