An investigation on behalf of investors in K-Sea Transportation Partners L.P. (NYSE:KSP) securities over potential violations of Federal Securities Laws by K-Sea Transportation Partners L.P. and others in connection with the K-Sea Transportation 's August 6, 2009 stock offering was announced.

K-Sea Transportation Partners L.P., located in East Brunswick, New Jersey, is a provider of marine transportation, distribution and logistics services for refined petroleum products in the United States. K-Sea Transportation Partners L.P. reported in 2007 Total Revenue of $226.57million, in 2008 $326.28million, and in 2009 $330.46million. According to the investigation by a law firm the investigation was triggered on October 28, 2009, when K-Sea Transportation Partners L.P. issued a press release announcing its operating results for the first quarter fiscal 2010. K-Sea Transportation Partners L.P. revealed that it would be unable to meet its earnings estimates and would be in violation of financial covenants under certain debt and lease agreements. K-Sea Transportation Partners L.P. said: 'The Company reported an operating loss of $1.3 million, including an asset impairment charge of $5.9 million. Operating income, before asset impairment charges, was $4.6 million, a decrease of $5.3 million, or 54%, compared to the first fiscal quarter ended September 30, 2008. Earnings before interest, taxes, depreciation and amortization ('EBITDA') for the first quarter of fiscal 2010 was $18.2 million, a decrease of $4.5 million, or 20%, compared to $22.7 million in the same quarter last year. EBITDA is a non-GAAP financial measure that is reconciled to net income, the most directly comparable GAAP measure [.... ]The Company also announced that its distribution to unitholders for the first fiscal quarter will be $0.45 per unit, or $1.80 per unit annualized, compared to the previous distribution of $0.77 per unit. This distribution will be payable on November 16, 2009 to unitholders of record on November 9, 2009. At this distribution rate, the Company anticipates its distributable cash flow for fiscal 2010 will exceed 1.00 times the amount needed to cover the distributions to be paid to unitholders. The Company believes it currently is in full compliance with all provisions of its debt and lease agreements. While the Company expects to continue to pay when due all future obligations in respect of its debt and leases, the Company expects that it will not be in compliance with its financial covenants in certain of these agreements as of the end of its second or third fiscal quarter of fiscal 2010, and in anticipation of these circumstances, will be seeking to amend these covenants.'

KSP stock traded over $37 per share in 2008, and over $47 per share in 2007. But a direct result of the announcement, so the investigation, KSP stock dropped from $22.45 per share on October 27, 2009, to $11.14 per share on October 29, 2009, and well below the August 6, 2009 $19.15 offering price. Recently shares of K-Sea Transportation Partners L.P. (KSP) traded at $6.88 per share, down from its52weekHigh of $24.59 per share.