Euronav is about to buy 5 ships for $255 million from the bankrupt US company Overseas ShipholdingGroup. The Belgian crude oil shipping group has created a joint venture with Blackstone’s GSO Capital Partners in order to finish the deal. Overseas Shipholding Group (OSG) is obliged to get money and to sell 3 VLCCs and 2 Aframaxes for $255m (OSG) according to the US Chapter 11 bankruptcy proceedings.
Before the deal is finished, the bankruptcy court has to approve it and to wait for the outcome of an auction where another company could offer more money. Euronav GSO joint venture could buy the tankers and later to sell them to Euronav. A source informed:
"In the event that the sale of the vessels to Euronav is consummated, affiliates of GSO will receive, as part of purchase price paid by Euronav to the joint venture, both bonds and new equity issued by Euronav."
Euronav's activity on the market is interesting. The group has just completed debt needed for the deal of $980 million for acquiring the Maersk Tankers Very Large Crude Carriers fleet. The Belgian group is hoping to modernize its fleet and to add more vessels to it in order to provide complete shipping services. The most important vessels managed, operated and chartered by the group, have a small average age.