Global law firms are reaping the benefits of an ongoing financial crunch plaguing the world’s shipping fleets.
The transaction effectively transfers ownership of Vela’s entire fleet to Bahri and makes that company the exclusive provider of crude shipping services for Aramco,
according to The Associated Press
. The merger will also make Bahri the world’s fourth-largest owner of large crude oil carriers called
Overseas Shipholding Group (OSG),
the largest tanker operator in the United States
, filed for Chapter 11 protection in Delaware on Wednesday. The New York–based company, which boasts a fleet of more than 100 tankers, lists $4.2 billion in total assets against nearly $2.7 billion in liabilities.
that OSG’s bankruptcy filing is the third-largest in the U.S. this year in total assets, trailing only Eastman Kodak and Residential Capital.
Cleary Gottlieb Steen & Hamilton
global restructuring and insolvency chair James Bromley in New York is advising OSG in the Chapter 11 case, along with partner Derek Abbott and special counsel Daniel Butz from Delaware’s
Morris, Nichols, Arsht & Tunnell
, which is serving as local counsel to the debtor. Neither firm has yet filed billing statements with the bankruptcy court.
White & Case is playing a role in the OSG bankruptcy as well,
representing a group of lenders
in restructuring negotiations with the company.
Israel’s Recanati family
owns 25 percent of the debtor, which is the world’s second-largest independent tanker operator by fleet size. OSG joins the ranks of other leading shipowners that have slipped into insolvency in recent months like General Maritime, Humpuss Sea Transport, Marco Polo Seatrade, Omega Navigation Enterprises, Sanko Steamship, and Stephenson Clarke Shipping,
according to our previous reports