OSG was one of the world’s largest oil tanker operators, and the only one to operate in both international markets and the highly regulated U.S. market. Chilmark was retained by OSG to advise on refinancing its balance sheet during a cyclical low in the shipping industry. As a part of that process, OSG discovered a tax issue which severely impaired its ability to refinance. With a debt maturity looming, and with the company losing significant amounts of money on above-market charter-in contracts, OSG filed for Chapter 11 protection.
Chilmark served as OSG’s financial advisor during its Chapter 11 proceeding. With our help, OSG successfully completed its restructuring and emerged from bankruptcy with a substantially reduced cost structure and a significantly deleveraged balance sheet. All of its creditors were paid in full, and its shareholders retained a significant portion of the reorganized company.
Throughout the process, we advised OSG on all aspects of its reorganization strategy. Our restructuring services included:
- Assisting management in the evaluation of their business plan including identifying opportunities to improve OSG’s operating cost structure
- Negotiating with secured lenders to allow for the continued use of 15 pledged vessels
- Renegotiating one of OSG’s joint venture loan facilities and evaluating strategic options for two joint ventures
- Negotiating a $1.5 billion equity rights offering and $1.35 billion in new debt financing
- Advising the Board of Directors on competing plans of reorganization, resolution of complex tax issues, and other strategic initiatives
EXPERIENCE – CASE STUDIES