Capital Product Partners LP, one of the largest ship owners in the United States, assured its partner, Overseas Shipholding Group Inc, that it would honor the lease agreement over three of its product tankers.
Overseas had recently filed for bankruptcy protection and the lease would be amended to lower the existing rates chargeable.
The leases are called bareboat charters and this is essentially an arrangement to hire a boat without any crew or contents, hence the term. The new rates would be at US$6,250 a day, nearly half of the rates in the original bareboat charter. Overseas has already filed the new charters with the bankruptcy court for approval and seek the 'rejection' of the old bareboat charters.
The bankruptcy announcement of Overseas sent many of its customers, noted names such as Capital Product, Diamond S Shipping and DHT Holdings to scramble and find alternative clients for their respective fleets.
Join the Conversation