Omega Navigation committee gets OK to solicit plan alternative offers

By Lisa Kerner

Charlotte, N.C., Sept. 17 - Omega Navigation Enterprises Inc.'s official committee of unsecured creditors was granted approval by the U.S. Bankruptcy Court for the Southern District of Texas to solicit offers for better alternatives to the company's proposed plan of reorganization, according to an attorney familiar with the case.

Omega Navigation filed its plan on Aug. 3.

The court denied the committee's request to terminate Omega's exclusive periods for filing and soliciting votes on a plan, the attorney said.

As previously reported, the committee filed for an emergency motion last week,

The committee said it wants to communicate with and give the company's financial and other business information to third parties with an interest in acquiring the Omega debtors and/or their businesses or assets, whether through one or more Chapter 11 plans or a combination of plans and asset sale transactions.

The committee objected to the related disclosure statement on Aug. 31, arguing that the plan violated the Bankruptcy Code and that the disclosure statement "proposes a solicitation and voting process that is confusing, unfair and inadequate."

In addition, the committee said previously it is looking to improve upon the following plan terms:

• Granting a new value funding transaction at a value prescribed by the Omega debtors without subjecting a proposed new equity interest to market forces to determine its fair value;

• Releasing senior lenders from claims asserted in Greek litigation. The committee said the company has valued unencumbered litigation assets at $570 million; and

• Retaining all claims and causes of action against the debtors' estates, including unencumbered Chapter 5 claims, which the company has not described or assigned values.

Omega Navigation is an Athens, Greece-based provider of marine transportation services. The company filed for bankruptcy on July 8, 2011 under Chapter 11 case number 11-35926.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.