Mission “Near” Impossible – Public Debt Award U.S.

Talk about an obstacle course. A financial investor assumes control from U.S. Shipping Partners LP, its bankrupt co-investor in a joint venture, a start-up U.S Jones Act company, which has undertaken a major newbuilding program and has two 49,000 DWT product carriers on the water with three more to be delivered. Being built in the U.S., the vessels are the most expensive of their type in the world with an en bloc construction cost of $750 million and as the coastwise trade for petroleum products had virtually disappeared, the appraised value at the time was $560 million. In fact, the market is so bad that, in addition, to the bankruptcy of its co-investor, which is now controlled by its main creditors, OSG felt the need to take private its U.S. flag operator, OSG America.

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