Omega Navigation gets extended access to cash collateral until Dec. 12

By Jim Witters

Wilmington, Del., Oct. 20 - Omega Navigation Enterprises Inc. received permission to continue to access the cash collateral of its prepetition lenders through Dec. 12, according to documents filed Wednesday in the U.S. Bankruptcy Court for the Southern District of Texas.

The use of cash collateral expired on Oct. 3. Both the senior facilities agent and the junior lenders objected to the extension.

HSH Nordbank AG is the agent for the senior facilities lenders, who are owed $242.72 million by the debtors. The junior lenders are owed $42.5 million.

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.

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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