Overseas Shipholding Group’s former agent bank, DnB, has punted its entire position in the bankrupt shipper’s revolving credit facility, said four sources close to the matter.
The Norwegian bank recently sold its piece of the debtor’s USD 1.5bn unsecured revolver for a price in the 102/105 context, said one of the sources and a fifth source close. The loan is quoted today at 104/106, up about a point from last week, said a sixth source.
DnB spokesperson Thomas Midteide confirmed that the bank sold out of the revolver, but declined to offer specifics on the disposition.
DnB stepped down as agent for OSG’s loan facility last year. Beginning August 2013, US National Bank identified itself as the company’s administrative agent, represented by legal counsel Milbank, Tweed, Hadley & McCloy, according to court filings.
Amid the shuffle, OSG’s creditors continue to work on competing plans of reorganization ahead of a 28 February exclusivity deadline.
Bondholders recently went restricted in order to finalize a rights offering proposal, as reported. Meanwhile, OSG’s lenders are formulating a rights offering of their own, said two of the sources and an additional source. Shareholders have also been organizing under Gibson Dunn, according to court documents.
Common shares traded at USD 7.50 today for a USD 230m market capitalization, compared to a low of USD 1.65 in early October.
OSG reported a net loss of USD 9.93m for November, more than quadruple the USD 1.85m net loss it posted for October, according to court filings. Shipping revenues also fell to USD 85.98m from USD 88.722m the month prior.
The company did not respond to requests for comment.
Article originally appeared in Debtwire. Link here (paywall).