Overseas Shipholding Bonds Fall After IRS Claims $463 MillionSarika Gangar
Bonds of Overseas Shipholding Group Inc. fell to their lowest level since November after the U.S. said it’s owed more than $463 million from the energy-transport company.
The shipper’s $300 million of 8.125 percent senior unsecured bonds due in March 2018 fell 7.5 cents to 33 cents on the dollar at 10:19 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The price was the lowest since the securities traded at 23 cents on Nov. 14.
The company, which entered into Chapter 11 reorganization in November, owes the funds claimed today to the Internal Revenue Service, the government said.
Robert Johnston, who headed Overseas Shipholding’s U.S.- flagged business, took over from Morten Arntzen as chief executive officer, the tanker company said in a Feb. 11 statement.