Overseas Shipholding: Court approves stipulations with Diamond S affiliates, Deutsche Bank

By Lisa Kerner

Charlotte, N.C., Feb. 3 - Overseas Shipholding Group, Inc. had a pair of stipulations approved on Monday, according to court documents filed with the U.S. Bankruptcy Court for the District of Delaware.

The first was the company's stipulation that resolves rejected time charter claims filed by affiliates of Diamond S Management LLC.

As previously reported, under the proposed stipulation, Diamond S affiliates Heroic Aquarius Inc., Heroic Scutum Inc., Heroic Hologium Inc., Heroic Hera Inc., Heroic Tucana Inc., Heroic Leo Inc. and Heroic Lyra Inc. will have general unsecured claims against Overseas Shipholding.

The company said Heroic Aquarius filed two $5.22 million claims for damages related to the rejection of a charter and related guarantee, Heroic Scutum filed two $9.7 million claims, Heroic Leo filed two $5.4 million claims, Heroic Tucana filed two $9.75 million claims, Heroic Lyra filed two $12.96 million claims, Heroic Hologium filed two $12.4 million claims and Heroic Hera filed two $1.96 million claims.

The Heroic Aquarius claims will be reduced to $2.34 million under the stipulation, the Heroic Scutum claims will be reduced to $4.35 million, the Heroic Leo claims will be reduced to $2.42 million, the Heroic Tucana claims will be reduced to $4.38 million, the Heroic Lyra claims will be reduced to $5.82 million, Heroic Hologium will have two $5.56 million claims, and the Heroic Hera claims will be reduced to $879,313.

Deutsche Bank stipulation

The second was a stipulation that resolves claims held by Deutsche Bank Securities Inc.

As previously reported, Overseas Shipholding said Deutsche Bank is the transferee and assignee of claims filed against some Overseas debtors by Sorrel Shipmanagement Inc., Belerion Maritime Co. and Wind Dancer Shipping, Inc.

Overseas said it guaranteed the performance of three affiliates of Capital Product Partners LP under charter party agreements reached in 2006.

In February 2013, the debtors sought court approval to reject the charter agreements and enter into new agreements and guarantees, with the new charter party agreements calling for lower rates.

Following approval of the rejection motion, Sorrel filed two $18.98 million general unsecured claims, Belerion filed two $17.78 million general unsecured claims, and Wind Dance filed two $17.35 million claims.

The claims were transferred to Deutsche Bank in July 2013.

Under the stipulation, the previous Sorrel claims will be allowed in the reduced amount of $15.09 million, the previous Belerion claims in the reduced amount of $14.13 million and the previous Wind Dancer claims in the reduced amount of $13.78 million.

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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