Capital Product Partners Reaches Deal to Assign Claims Against Overseas Shipholding

Capital ProductPartners L.P. (the "Partnership") (NASDAQ: CPLP) announced todayagreements to transfer its claims against Overseas Shipholding GroupInc. (NYSE: OSG) and certain of OSG's subsidiaries regarding the longterm bareboat charters of three of the Partnership's product tankervessels. As previously reported by the Partnership, on November 14, 2012, OSGand certain of its subsidiaries made a voluntary filing for reliefunder Chapter 11 of the U.S. Bankruptcy Code in the U.S. BankruptcyCourt for the District of Delaware (the "Bankruptcy Court"). ThePartnership had three IMO II/III Chemical/Product tankers (M/TAlexandros II, M/T Aristotelis II and M/T Aris II, all built in 2008 by STX Offshore & Shipbuilding Co. Ltd.) with long term bareboatcharters to subsidiaries of OSG. After discussions with OSG, the Partnership agreed to enter into newcharters with OSG on substantially the same terms as the priorcharters, but at a bareboat rate of $6,250 per day. The new charterswere approved by the Bankruptcy Court on March 21, 2013, and wereeffective as of March 1, 2013. On the same date, the Bankruptcy Courtalso rejected the previous charters as of March 1, 2013. Rejection ofeach charter constitutes a material breach of such charter. On May24, 2013, the Partnership filed claims (the "Claims") against each ofthe charterers and their respective guarantors for damages resultingfrom the rejection of each of the previous charters, including, amongother things, the difference between the reduced amount of the newcharters and the amount due under each of the rejected charters.