Overseas Shipholding units get lead bid for $255 million vessel sale

By Caroline Salls

Pittsburgh, Feb. 4 - Five Overseas Shipholding Group, Inc. subsidiaries entered into stalking horse agreements for the proposed $255 million sale of five vessels that are collateral for secured financing provided by the Export-Import Bank of China, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The stalking horse bidders are Shipco 1, LLC, Shipco 2, LLC, Shipco 3, LLC and Shipco 4, LLC. They are subsidiaries of Ship Acquisition Co., LLC, a joint venture between affiliates of GSO Capital Partners LP and Euronav NV.

The stalking horse bidders' obligations are guaranteed by six GSO-affiliated investment funds.

If the stalking horse bidders are not ultimately the high bidders for the vessels, the Overseas debtors will pay them a break-up fee of $7.01 million and reimburse up to $1 million of their sale-related expenses.

Competing bids are due by 4 p.m. ET on March 21. If one or more bids are received, an auction will be held on March 25.

Overseas Shipholding, a New York-based tanker company, filed for bankruptcy on Nov. 14, 2012 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 12-20000.

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