OSG’s Tankers Are No Longer up for Auction

OSGEuronav’s hopes of acquiring five OSG-owned VLCCs were dashed this week when OSG and their debtors came to an agreement to withdraw a previously-announced motion to auction off the ships.

OSG and their debtors drew up a new term sheet whereby OSG will raise $750 million through a combination of a rights offering of stock and secured exit financing. The proceeds of the Rights Offering and such exit financing will enable the Debtors to satisfy the secured claims of the Export-Import Bank of China (CEXIM) in full, in cash.

The vessels had received a $225 million bid from a joint venture between GSO Capital Partners LP and Euronav N.V.