Anyone know what’s going on over there? Haven’t heard much since they filed for Chapter 11 on November 14th. All I know as of right now is that they appear to still be operating as if nothing ever happened, which is good I guess, but what exactly is going on? You don’t just file for bankruptcy and then just go on about your business so something must be happening, but there’s no chatter about it that I’ve heard thus far.
Who’s got the dirty details!?
I used to work for OSG before the bankruptcy. Still have a lot of friends over there. The US fleet does very well. They are probably still restructuring. I guess they didn’t pay taxes since 2004.
That’s what makes me skeptical about Kirby-sea. Their inland operations are strong from my northeast perspective but so many acquisitions so fast rarely goes as planned in the long run. Too big, too quick.
It is very common for companies to continue to operate in Bankruptcy for many years. Remember when half the airlines were bankrupt, but kept flying. Chapter 11 Bankruptcy allows a company to “cram-down” its debts by as much as 50%, void unfavorable contracts (such as Union contracts), and enter into a 5 year repayment plan for the remaining debt. It also allows a company to obtain new DIP (debtor in possession) financing. The goal of Chapter 11 is to save the company and give it breathing room to get back on its feet again under court supervision.
While its always better to work for a financially strong company, its usually not bad working for a company in Chapter 11.