Omega Navigation seeks extension of exclusive period to file plan

By Jim Witters

Wilmington, Del., Oct. 13 - Omega Navigation Enterprises Inc. requested six-month extensions of its exclusive period for filing a Chapter 11 plan and soliciting acceptances of the plan, according to documents filed Thursday in the U.S. Bankruptcy Court for the Southern District of Texas.

The debtors wish to extend the period for filing a plan to May 7, 2012, from Nov. 7. They wish to extend the period for soliciting acceptances to July 6, 2012, from Jan. 6.

The motion is scheduled for a hearing at 4 p.m. ET on Nov. 14.

The debtors are seeking additional time because they "have encountered a constant barrage of attacks from the senior facilities agent and senior facilities lenders, beginning at the first-day hearings with a contested cash collateral hearing, continuing with incessant information requests (both through formal discovery and informal demands) intended to tax the debtors' limited staff, and culminating in the senior facilities agent's conversion/dismissal motion and lift stay motion," the motion stated.

Although the debtors stated that they are "international companies with substantial assets," their "onshore working staff consists of only 27 people, and they have been working around the clock to meet the demands of these bankruptcy cases," the motion stated.

"As the court is well aware, a number of complex and sophisticated issues have already arisen in these cases, including questions of United States Bankruptcy Court jurisdiction over international banking institutions, international conflicts of law, numerous lawsuits in foreign jurisdictions, the intersection of bankruptcy law and maritime law, etc., as well as the myriad of fact issues and legal issues raised in the currently pending motion to dismiss and motion to lift stay. There is little doubt that these cases are large and complex," the filing stated.

A trial on the motion to dismiss and the motion to lift stay is scheduled for Nov. 28.

"A competing plan, at this time, would unnecessarily slow down the debtors' reorganization. For example, a party (such as the senior lenders) could use the opportunity to file a competing plan - even a truly unworkable plan - merely to gain unfair leverage over the debtors by forcing the debtors to devote precious time, money and human resources to defeat such a plan," the motion stated.

As previously reported, the debtors filed for bankruptcy after they were unable to reach an agreement with senior lenders about an out-of-court restructuring of their senior credit loan obligations, including $242.72 million of outstanding principal plus unpaid pre-petition interest, fees and expenses.

Omega Navigation, an Athens-based provider of marine transportation services, filed for bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas on July 8. The Chapter 11 case number is 11-35926.

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