DHT Holdings to sell claims against Overseas Shipholding subsidiaries

By Caroline Salls

Pittsburgh, April 2 - DHT Holdings, Inc. entered into assignment of claims agreements in connection with claims against Overseas Shipholding Group, Inc. subsidiaries Dignity Chartering Corp. and Alpha Suezmax Corp., according to a 6-K filed by DHT Tuesday with the Securities and Exchange Commission.

DHT said it filed a total of $51.84 million in claims, plus attorneys' fees. The company said the claims in question arise from the Overseas debtors' rejection of bareboat charter agreements for the Overseas Newcastle and Overseas London, respectively.

According to the 6-K, DHT also filed claims against Overseas Shipholding on account of its guarantees of the subsidiaries' obligations under each of the bareboat charter agreements.

Under the assignment of claims agreements, Citigroup Financial Products Inc. agreed to purchase the undivided 100% interest in DHT's right, title and interest in the claims, all rights to receive any cash, interest, fees, expenses, damage penalties and other amounts related to the claims, any cause of action arising out of the claims, any voting right arising out of the claims and all proceeds distributed or payable in connection with the claims.

Citigroup's purchase price will be 33.25% of the amount of the claims ultimately allowed by the U.S. Bankruptcy Court for the District of Delaware.

DHT said it received an initial payment of $6.89 million and will receive a final payment plus interest from Citigroup for the transferred rights when the claims are allowed by the court.

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

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