<html> <head><style type ="text/css">body { font-family: "Bloomberg Prop Unicode I", Verdana, sans-serif; font-size:125%; letter-spacing: -0.3pt; color: #FF9F0F; background-color: #000000; text-align: left; } p {line-height: 1.25em; max-width:900px; width:expression(document.body.clientWidth > 900? "900px": "auto" );} h1, h2, h3 { text-align: left; font-weight: normal; color: #FFFFFF; } h1 { font-size: 130%; } h2 { font-size: 115%; } h3 { font-size: 100%; } #bb-style { font-size: 90%; max-width:900px; width:expression(document.body.clientWidth > 900? "900px": "auto" ); } b, strong { font-weight: bold; } i, em { color: #FEC54A; } pre { font-family: "Andale Mono", "Monaco", "Lucida Console"; letter-spacing: -0.3pt; line-height: 1.25em; } table { border: 0; font-size: 90%; width: 100%; margin-left: auto; margin-right: auto; } td, tr { text-align: left; } td.numeric { text-align: right; } a:link { color:#53B2F5; text-decoration: none; } a:visited {color:#53B2F5} a:active {color:#53B2F5} a:hover {color:#53B2F5} </style> </head> <body> <p>By Jonathan Weil</p> <p>Overseas Shipholding Group Inc., the New York-based tanker-fleet operator that was the subject of my <a href="http://www.bloomberg.com/news/2012-11-08/an-honest-guy-on-wall-street.html">column</a> last week, <a href="http://www.bloomberg.com/news/2012-11-14/overseas-shipholding-group-files-for-bankruptcy.html">filed</a> for Chapter 11 bankruptcy-court protection today. In hindsight, it was a perfect short for anyone paying attention to the company's securities filings.</p> <p>On Oct. 3, Overseas Shipholding <a href="http://sec.gov/Archives/edgar/data/75208/000007520812000026/form8k2012.htm">disclosed</a> that a member of its board and audit committee, G. Allen Andreas III, had resigned, citing a disagreement with the company over its handling of a tax issue. Andreas, a former vice president at the Wall Street investment bank Allen &amp; Co, is a 43-year-old money manager in New York at Galaco Capital, which oversees his family's holdings.</p> <p>Less than three weeks later, on Oct. 22, the company <a href="http://sec.gov/Archives/edgar/data/75208/000090342312000497/osg8k_1022.htm">said</a> investors should no longer rely on its financial statements since 2009, citing the same tax issue Andreas had cautioned about in his <a href="http://sec.gov/Archives/edgar/data/75208/000007520812000026/form8k2012ex991.htm">resignation letter</a>. The company also said it might file for Chapter 11.</p> <p>Overseas Shipholding's stock closed at $7.08 on Oct. 2, the day before Andreas's resignation letter was made public. It fell to $6.82 on Oct. 3. Yesterday, the shares closed at $1.13. Today, the New York Stock Exchange <a href="http://www.nyse.com/press/1352888725025.html">suspended</a> trading in the stock and began delisting proceedings.</p> <p>At least Andreas gave investors some advance warning.</p> <p>(<a href="http://topics.bloomberg.com/jonathan-weil/">Jonathan Weil</a> is a Bloomberg View columnist. <a title="Open Web Site" rel="external" href="https://twitter.com/#!/JonathanWeil">Follow</a> him on Twitter.)</p> <p>Read more breaking commentary from Bloomberg View at <a title="Open Web Site" rel="external" href="http://www.bloomberg.com/view/the-ticker/">the Ticker</a>.</p> </body> </html>