OSG Floats Ch. 11 Plan Featuring Debt-for-Equity Swap

Law360, Wilmington (March 7, 2014, 10:08 PM EST) -- Overseas Shipholding Group Inc. submitted a Chapter 11 plan Friday that envisions the oil tanker giant and its subsidiaries emerging from bankruptcy as a reorganized entity owned primarily by its largest lenders.

OSG's joint plan would see lenders owed $1.5 billion under a credit agreement receive the lion's share of newly issued stock, and also pay administrative and tax claims in full and provide a $935 million exit facility, among other things, according to documents filed in Delaware bankruptcy court.

“The debtors believe that the plan...
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