OSG Bondholders Say Ch. 11 Plan Falls Short Of Full Payment

Law360, Wilmington (July 11, 2014, 8:22 PM EDT) -- Creditor representatives took aim at Overseas Shipholding Group Inc.’s Chapter 11 plan on Friday, contending the bankrupt oil tanker giant is not providing investors the full recovery it promised on more than $200 million in bonds.

Both the official committee of unsecured creditors and the Bank of New York Mellon argue that OSG’s plan cannot be confirmed unless the bondholders they represent are paid interest on prepetition interest, according to limited objections filed in Delaware bankruptcy court.

The committee — speaking on behalf of OSG investors...
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