OSG Can’t Justify Bond Waiver For $320M Funds: US Trustee

Law360, Wilmington (December 4, 2012, 7:43 PM EST) -- The U.S. Trustee on Monday balked at Overseas Shipholding Group Inc.’s bid for a waiver of a bankruptcy rule requiring bonds to safeguard debtor bank accounts, saying the troubled oil tanker company hasn’t justified the exception for accounts worth $320 million.

In an objection filed in Delaware bankruptcy court, U.S. Trustee Roberta DeAngelis said mere inconvenience is not a sufficient basis for OSG to skirt Section 345(b) of the Bankruptcy Code, which demands that any debtor investment or deposit be backed by a bond in favor...
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