Overseas Shipholding Group Inc. (OSG) [NYSE:OSG] announced Wednesday that it has filed for Chapter 11 bankruptcy protection, seeking to deal with billions of dollars in debt it has racked up as shipping rates have dropped, Ship & Bunker reports.
"The last few years have been difficult for everyone in our industry, but OSG has continued to provide safe, incident-free and reliable shipping services for our global client base," said President and CEO Morten Arntzen.
The company, which owns or operates 111 vessels that transport oil, refined products, and natural gas, says it will continue normal operations during the bankruptcy process.
Last month, OSG told investors that its financial statements for at least the previous three years should not be relied upon due to a tax issue arising from its status as a U.S.-domiciled company with substantial international operations.
Bloomberg News reports that the company, which listed assets of $4.15 billion and debt of $2.67 billion in its bankruptcy filing, has had 13 straight quarters of net losses as lower oil demand in the U.S. and Europe has reduced voyages on the Atlantic, where OSG's fleet is concentrated.
The price to hire an international crude tanker has dropped to $14,900 a day from $28,000, a company vice president said in an affidavit.
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