UPDATE: Credit Suisse Downgrades Overseas Shipholding Group to Neutral on Possible Chapter 11

Credit Suisse reduced its rating on Overseas Shipholding Group

from Outperform to Neutral and lowered its price target from $8 to $1. Credit Suisse noted, "OSG has turned attention to a deferred US Income tax liability of $790 M. We note a director of the company resigned earlier this month due to disagreements with OSGs audit process. We wonder if management is trying to shift the reason for a potential Chapter 11 bankruptcy to a tax issue as opposed to a liquidity issue ($250 M shortfall by our estimate). Unfortunately management has been less than forthcoming in much of their strategy other than highlighting their liquidity on previous calls which they stated was robust. Our discounted NAV estimate still puts the value of OSGs assets significantly above Friday's close." Overseas Shipholding Group closed at $1.23 on Monday.