Overseas Shipholding Group, Inc. Commences Chapter 11 Process to Reduce Debt and Other Financial Obligations and Create Solid

  Overseas Shipholding Group, Inc. Commences Chapter 11 Process to Reduce Debt
  and Other Financial Obligations and Create Solid Financial Foundation

      Company Intends to Continue Serving Customers and Partners Without
                                 Interruption

Business Wire

NEW YORK -- November 14, 2012

Overseas Shipholding Group, Inc. (NYSE: OSG), a market leader providing global
energy transportation services, today filed voluntary Chapter 11 petitions for
itself and certain operating subsidiaries in the U.S. Bankruptcy Court for the
District of Delaware.

The company intends to use the Chapter 11 process to significantly reduce its
debt profile, reorganize other financial obligations and create a strong
financial foundation for the Company’s future. Certain subsidiaries, including
those that manage the Company’s facilities in Manila, Singapore, Greece,
London and Newcastle, have not filed for Chapter 11 reorganization. A complete
list of the OSG entities which filed, and those which did not file, Chapter 11
petitions, is available at www.kccllc.net/osg. OSG intends to work with its
constituencies to emerge from bankruptcy as quickly as possible while
maintaining the company’s market position, business model and strategy.

OSG will continue to serve customers without interruption while it reorganizes
its debt. OSG has more than adequate cash to allow the company to continue
operating as usual and does not require debtor-in-possession financing. In
addition, the company expects to generate significant cash flow while in
Chapter 11, further ensuring its ability to maintain safe, reliable and
high-quality operations throughout the process.

Morten Arntzen, President and CEO, commented: “The last few years have been
difficult for everyone in our industry, but OSG has continued to provide safe,
incident-free and reliable shipping services for our global client base. Our
Jones Act fleet, in particular, has performed very well the last 18 months and
has secured a number of notable contract extensions. Over the past two weeks,
OSG has continued to fix vessels with our clients. We will use the Chapter 11
process to definitively resolve our financial issues. An orderly restructuring
in Chapter 11 will provide stability both to OSG and to the entire shipping
industry. We expect to emerge from our Chapter 11 reorganization with a solid
financial base and clear path to future success.

“During the reorganization, we have more than enough cash to support our
operations, and we expect it to be business as usual for OSG’s customers,
employees, partners and suppliers. Thanks to our talented and dedicated
employees around the world, we continue to enjoy a great reputation in our
markets. I would like to thank them for their continued support and hard
work,” Mr. Arntzen continued.

OSG has filed first-day motions that ask the Court to approve, among other
things, payment of employee wages and benefits that were incurred before the
petition was filed, payment of certain pre-filing amounts owed to vendors and
suppliers, and continued access to the company’s cash collateral and cash
management systems. The company is working closely with its vendors to secure
their continued support.

On October 22, 2012, OSG informed investors that it is in the process of
reviewing a tax issue arising from the fact that the company is domiciled in
the United States and has substantial international operations, and relating
to the interpretation of certain provisions contained in the company’s loan
agreements. As a result of this issue, the company informed investors that its
financial statements for at least the previous three years should not be
relied upon.

During the process, John Ray, CEO of Greylock Partners LLC, will serve as
Chief Reorganization Officer. OSG is being advised by its legal counsel,
Cleary Gottlieb Steen & Hamilton LLP, and its financial advisor, Chilmark
Partners LLC.

Additional information about the Company’s reorganization may be found online
at www.kccllc.net/osg.

About OSG

Overseas Shipholding Group, Inc. (NYSE: OSG), is one of the largest publicly
traded tanker companies in the world. As a market leader in global energy
transportation services for crude oil and petroleum products in the U.S. and
International Flag markets, OSG is committed to setting high standards of
excellence for its quality, safety and environmental performance. OSG is
recognized as one of the world's most customer-focused marine transportation
companies and is headquartered in New York City, NY. More information is
available at www.osg.com.

Forward-Looking Statements

This release contains forward-looking statements. These statements are based
on OSG management's current expectations and assumptions and are subject to a
number of risks, uncertainties and other factors, many of which are beyond the
control of OSG, which may cause actual results to differ materially from those
implied or expressed by the forward-looking statements - both in connection
with the Chapter 11 filings OSG is announcing today and OSG's business and
financial prospects. Statements about management's expectations, including
about OSG's ability to reduce its debt profile and reorganize its financial
obligations, work with various constituencies, maintain its market position,
continue to operate without interruption, and definitively resolve its
financial issues during the bankruptcy process, are based on current
assumptions and expectations. No assurance can be made that these events will
come to fruition. Factors, risks and uncertainties that could cause actual
results to differ from the expectations reflected in these forward-looking
statements are described in the company's Annual Report for 2011 on Form 10-K
and those risks discussed in the other reports OSG files with the Securities
and Exchange Commission. The Company disclaims any obligation to update any
forward-looking statements.

Contact:

The Abernathy MacGregor Group
Chuck Burgess, 212-371-5999
CLB@abmac.com
or
OSG Media Hotline
212-578-1612
or
Investor Contact:
John F. Collins, Jr., 212-578-1699