UPDATE: Deutsche Bank Removes PT on Overseas Shipping Group on Possible Bankruptcy
Deutsche Bank reiterated its Hold rating on Overseas Shipping Group (NYSE: OSG) and suspended its previous $4 price target as a tax issue may lead to restatements of financials for the last three years.
Deutsche Bank noted, "Prior to the open this morning, OSG filed an 8-K outlining a potential tax issue that may result in financial restatements. However, in the last sentence, OSG stated it is in negotiations with its lenders and evaluating its strategic options which may include a voluntary Chapter 11 bankruptcy filing. While the ongoing negotiations are not new, this is OSG's first mention of a potential Chapter 11 filing. We believed lender negotiations were not progressing well when the company announced it had fully drawn its revolver in July. Given OSG's statements, a potential filing may be a real possibility rather than a negotiating tactic with its lenders, if negotiations are still not progressing well at this point in time."
Overseas Shipping Group closed at $3.25 on Friday.
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