U.S. Shipping won't pay quarterly dividend

The tanker company U.S. Shipping Partners L.P. said Tuesday that in light of a continuing review of strategic alternatives and negotiations with its lenders to amend certain financial covenants under its senior credit facility that it will not pay a quarterly distribution for the three months ended June 30, 2008.

The company provides long-haul marine transportation services, principally for refined petroleum products and chemicals using a fleet of 11 tank vessels: six integrated tug barge units, one product tanker, three chemical parcel tankers and one articulated tug barge.

On Monday, the New York Stock Exchange said it had contacted the company and requested it issue a public statement indicating whether there were any corporate developments that might explain the unusual market activity in its stock, but the company said it was its policy not to comment on unusual market activity.

U.S. Shipping's stock has dropped sharply in price over the last year from a high of $20.56 per share to as low as $1.25 per share. Last week it began to rise sharply from less than $2 per share to reach a high of $5 per share at one point Monday. Daily volumes traded on the exchange Monday and Tuesday were more than 10 times what they were a week earlier. The shares closed at $3.42 on Tuesday and at noon on Wednesday they were trading at $2.44 per share. 

Source: American Shipper