Overseas Shipholding Group, Inc. has reached an agreement with the U.S. Securities and Exchange Commission (“SEC”) fully resolving a previously disclosed SEC investigation into the failure of OSG to record certain federal income tax liabilities in its financial statements prior to the second quarter of 2012, the company said in its press release.
This agreement with the SEC would also resolve the last remaining claim in the Company’s bankruptcy case. The Company will file a motion requesting bankruptcy court approval of the resolution with the SEC and will simultaneously request an order closing the Company’s bankruptcy case.
In the resolution, OSG neither admits nor denies the SEC’s allegations that the Company violated certain provisions of the Securities Act of 1933, the Securities Exchange Act of 1934 and related rules. Subject to bankruptcy court approval, OSG will pay a $5 million civil penalty related to the SEC investigation, which was fully reserved for as of September 30, 2016. The SEC resolution does not require any changes to the Company’s historical financial statements. OSG previously restated its annual financial statements for 2000 through 2011 and for the quarters ended March 31 and June 30, 2012.
The SEC has acknowledged OSG’s cooperation with the SEC staff throughout the course of its investigation, as well as OSG’s implementation of remedial measures and improvements to internal accounting controls over its tax reporting functions and changes to the senior management of OSG since 2012.
About Overseas Shipholding Group, Inc.
Overseas Shipholding Group, Inc. is a publicly traded tanker company providing energy transportation services for crude oil and petroleum products in the U.S. Flag markets. OSG is a major operator of tankers and ATBs in the Jones Act industry. OSG’s 24-vessel U.S. Flag fleet consists of eight ATBs, two lightering ATBs, three shuttle tankers, nine MR tankers, and two non-Jones Act MR tankers that participate in the U.S. Maritime Security Program.