Overseas Shipholding seeks 90-day extension of plan exclusive periods

By Jim Witters

Wilmington, Del., Aug. 2 - Overseas Shipholding Group, Inc. is asking for a 90-day extension of its exclusive periods for filing a Chapter 11 plan and for soliciting plan votes, according to documents filed Aug. 2 with the U.S. Bankruptcy Court for the District of Delaware.

The company says it has "made tremendous progress" in the bankruptcy case, including developing "long-term business plans that will form the operational basis for a reorganized business."

The additional time is needed to allow the debtors to "continue the claims resolution process to reconcile and fix the more than 1,600 proofs of claim that have been filed against them, including more than $400 million in asserted damages claims from chartered vessels that have been rejected, more than $450 million in claims asserted by the Internal Revenue Service, and thousands of asbestos related claims."

Overseas Shipholding says it also needs the extension "to negotiate and discuss plan structure and mechanics with their various creditor constituencies, as well as to provide for sufficient financing or other liquidity upon emergence."

If the motion is approved, the exclusive period for filing a Chapter 11 plan would be extended through Nov. 30 from Aug. 2. The exclusive period for soliciting acceptances of the plan would be extended through Jan. 31, 2014, from Oct. 1.

This is the company's second request for an extension.

A hearing on the request is scheduled for 10 a.m. ET on Aug. 26.

Under local rules in Delaware, exclusivity is automatically extended through the date of the hearing on the motion.

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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