Aker Philadelphia Shipyard involved in American Shipping, OSG settlement negotiations

Aker Philadelphia Shipyard's only current customer, American Shipping Company, today informed the market that it still has not been able to arrange financing for its two shuttle tankers. In the event that American Shipping is unsuccessful in securing financing, Aker Philadelphia Shipyard may not be able to maintain adequate liquidity to continue the build program for American Shipping on an uninterrupted basis.
American Shipping also noted to the market that the nonbinding settlement agreement between American Shipping and its charterer, Overseas Shipholding Group, to settle all of their commercial disagreements, signed in March 2009, has not been implemented. Aker Philadelphia Shipyard has recently become an active participant in these negotiations.
Discussions with all parties are continuing but there is no assurance that the parties will enter into a definitive settlement agreement. Absent such an agreement, Aker Philadelphia Shipyard may be unable to obtain the funding necessary to continue its current build program. 
"We regret that the non-binding settlement agreement has not been implemented," says Jim Miller, CEO at Aker Philadelphia Shipyard. "It is not in anyone's interest to discuss who's to blame. At this time we are all concentrating our efforts to find a solution to the situation, preferably along the lines of the initial non-binding settlement agreement, which would allow us to return our focus to our highly efficient and successful shipbuilding operation here in Philadelphia," Miller said.
If financing for the shuttle tankers is not obtained or the parties do no reach a definitive settlement agreement in the near term, then it may have a material adverse effect on AKPS's financial position and operations.