OSG exits Chapter 11

OSG has exited Chapter 11 after almost two years under court protection.

The tanker owner said it is emerging from the process with a strong balance sheet, a focused strategy and a solid customer base.

Captain Bob Johnston, chief executive of OSG, said: “Today marks the start of a new beginning for our company.”

Chairman John Ray says the restructuring has focused on creating a competitive structure to allow the company considerable flexibility to grow the business.

OSG was one of the most high-profile shipping companies to file for Chapter 11 when it sought protection in November 2012 with debt of $2.67bn.

It is exiting Chapter 11 with the backing of financing running to $1.35bn from Jefferies, which is spread across four facilities.

OSG has also set its sights on returning to the New York Stock Exchange where it will apply to list its B shares.

Its A shares and two classes of warrants will continue to trade over the counter.

Yesterday the company reported a loss of $204.11m for the three months to the end of June, much deeper than the $24.15m deficit seen a year ago.

The owner has a fleet of 32 crude tankers, including two chartered vessels, four gas vessels 27 products tankers and 24 US flag ships.