Oil and petroleum products shipper Overseas Shipholding Group Inc. (NYSE: OSG) filed a document with the Securities and Exchange Commission this morning indicating that the company is "evaluating its strategic options, including the potential voluntary filing of a petition for relief to reorganize under Chapter 11 of the Bankruptcy Code." The company is reviewing a tax issue related to its loan agreements:
As a result of that continuing process, on October 19, 2012, the Audit Committee of the Board of Directors of the Company, on the recommendation of management, concluded that the Company's previously issued financial statements for at least the three years ended December 31, 2011 and associated interim periods, and for the fiscal quarters ended March 31 and June 30, 2012, should no longer be relied upon.
Day rates for tankers have been very low since reaching a peak of around $45,000 a day in April of this year. By late August, tankers were operating at a loss on some routes, and they have done so ever since.
Overseas Shipping's shares are down about 66% at $1.09 after setting a new 52-week low of $1.02 earlier today. The prior range had been $3.13 to $15.16.