Omega Navigation secures court approval of senior lender settlement

By Caroline Salls

Pittsburgh, Jan. 16 - Omega Navigation Enterprises Inc. received court approval of a settlement agreement with its senior lenders, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

Under the settlement agreement, the senior lenders will make cash payments to the debtors' estates for the following purposes:

• $500,000 to pay allowed priority claims, not including professional fees, and the claims of general unsecured creditors;

• $450,000 for committee professionals for accrued allowed professional fees and expenses, minus any amounts paid on or after Nov. 26;

• About $5.03 million to pay professionals for accrued allowed professional fees and expenses and other Omega debtor out-of-pocket expenses, minus any amounts paid on or after Nov. 26; and

• $250,000 to the debtors' lead counsel, Bracewell & Giuliani LLP, for legal fees.

In addition, the company will transfer eight vessels to the senior lenders, according to the motion.

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.

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