(Reuters) – Ship owner Capital Product Partners LP said it would continue to lease three of its product tankers to Overseas Shipholding Group Inc, which has filed for bankruptcy protection, but at a lower rate.
The new long-term bareboat charters – an arrangement to hire a boat without crew or provisions – are for $6,250 per day, almost 50 percent lower than those under the existing charter.
Debt-laden Overseas Shipholding, better known by its earlier ticker symbol OSG, filed for bankruptcy protection last November as questions about its financial statements shut it out of credit markets.
The bankruptcy filing sent companies that lease ships to OSG, including Capital Product, Wilbur Ross-backed Diamond S Shipping and DHT Holdings Inc, scrambling to find alternative customers.
Analysts had said Capital Product’s above-market leases with OSG could be at risk.
OSG has filed a motion seeking court approval of the new charters and approval to “reject” the existing bareboat charters, Capital Product said in a statement late on Thursday.
The new charters, if approved, will be effective March 1.
However, if the charters are rejected, Greece-based Capital Product can make a claim for the difference in the rate between the new and the existing charters, the company said.
(c) 2013 Thomson Reuters, Click For Restrictions
Join the 67,378 members that receive our newsletter.
Have a news tip? Let us know.
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
In the United States, we have a problem that’s so BIG and obvious that even Elon Musk can’t see it. Our highways are broken, our streets are clogged with traffic,...
SMAILIA, Egypt March 31 (Reuters) – Divers inspected the hull of the Ever Given on Wednesday as the man tasked with investigating how the giant container ship ran aground, choking...
