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Barge operator K-Sea Transportation Partners L.P. has announced that it has been informed that the owners of its general partner have withdrawn the registration statement for the proposed initial public offering of K-Sea GP Holdings LP due to 'the current state of the financial markets'.

The decision follows an announcement made in August when K-Sea said that it would be holding a public offering of 2 million common units. The company also planned to give underwriters the option to purchase up to an additional 300,000 common units.

According to K-Sea, the net proceeds of the offering, after deducting underwriting discounts and commissions, were to be used to repay debts and make construction progress payments in connection with K-Sea's vessel newbuilding program.

Commenting on the company's decision, Timothy J. Casey, President and CEO of K-Sea, said "The fundamentals of our business remain solid and we are confident in our prospects. The possible general partner IPO would have had no impact on our results of operations or financial condition, and its withdrawal also has no impact on us."

K-Sea Transportation Partners is one of the largest coastwise tank barge operators in the United States. The company provides refined petroleum products transportation, distribution and logistics services in the U.S. domestic marine transportation market.

From locations in New York, Philadelphia, Norfolk, Seattle and Honolulu, K-Sea operates a large fleet of tugs and tank barges that serves a wide range of customers, including major oil companies, oil traders and refiners.