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NEW YORK--(BUSINESS WIRE)--Aug. 31, 2009--
Overseas Shipholding Group, Inc. (NYSE: OSG), a market leader in
providing energy transportation services, today announced that it has
signed a nonbinding settlement proposal with American Shipping Company
ASA (AMSC) that seeks to settle all outstanding commercial disagreements
between the two companies. The proposal is intended to resolve certain
liquidity issues previously disclosed by Aker Philadelphia Shipyard ASA
(AKPS), for AKPS to continue its 12-ship newbuild program. All 12
vessels have been chartered out to OSG, seven of which have delivered
and are trading in the Jones Act market.
The proposal also provides for the dismissal with prejudice of all the
claims in the arbitration among the parties and contains a number of
provisions materially altering the prior agreements among the parties.
The proposal is nonbinding and there can be no assurance that definitive
agreements will be entered into. In addition, the proposal is subject to
certain conditions precedent, including the receipt of third party
approvals from various lenders and governmental authorities, the
execution and delivery of satisfactory definitive documentation and the
completion of satisfactory due diligence.
Overseas Shipholding Group, Inc. (NYSE: OSG), a Dow Jones Transportation
Index company, is one of the largest publicly traded tanker companies in
the world. As a market leader in global energy transportation services
for crude oil, petroleum products and gas in the U.S. and International
Flag markets, OSG is committed to setting high standards of excellence
for its quality, safety and environmental programs. OSG is recognized as
one of the world’s most customer-focused marine transportation companies
and is headquartered in New York City, NY. More information is available
Source: Overseas Shipholding Group, Inc.
For more information:
OSG Ship Management, Inc.
Schlueter, +1 212-578-1699
Vice President Corporate Communications
and Investor Relations