Omega Navigation now has until May 31 to file plan of reorganization

By Lisa Kerner

Charlotte, N.C., Dec. 19 - Omega Navigation Enterprises, Inc.'s exclusive period to file a plan of reorganization has been extended to May 31, 2012 by the U.S. Bankruptcy Court for the Southern District of Texas, according to an attorney familiar with the case.

The judge wants the case mediated, which is voluntary, and which may prove difficult because the senior lenders would have to agree to a consensual resolution, the attorney said.

In addition, the judge, unhappy with the conduct of senior lenders trustee HSH Nordstrom Bank AG and lenders Credit Suisse, Lloyd's Bank and Commerzbank, ordered the parties to return to court. The parties must demonstrate to the judge why sanctions should not be entered against them for the "disturbing" way in which they conducted the litigation, the attorney said.

As previously reported, the exclusivity period had been extended to Dec. 5, the date of the status conference hearing.

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

Omega Navigation is an Athens-based provider of marine transportation services. The company filed for bankruptcy on July 8. The Chapter 11 case number is 11-35926.

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