Omega Navigation: Bid procedures, timetable for sale of equity interests approved with modifications

By Lisa Kerner

Charlotte, N.C., Jan. 23 - Omega Navigation Enterprises Inc.'s bid procedures to facilitate the sale of its equity interests were approved by the U.S. Bankruptcy Court for the Southern District of Texas on Jan. 23, according to an attorney familiar with the case.

The judge approved the timetable for the sale but modified several provisions, including deleting requirement that bids be unconditional, the attorney said.

Proposed bidding procedures

The proposed bidding procedures provide the following:

• Bidders may bid on one or two of the equity interests, but the company prefers bids on all three entities;

• The bidding deadline is 4 p.m. ET on Feb. 4;

• An auction will occur at 10 a.m. ET on Feb. 8;

• The highest and best qualifying bid will serve as the opening bid;

• Qualifying bidders may make credit bids;

• A sale hearing will occur at 2 p.m. ET on Feb. 11; and

• The closing of the sale must occur within 10 calendar days of the entry of the sale order.

As previously reported, the sale follows the court's rejection of Omega's plan to transfer its equity interests in its subsidiaries to One Investments Inc. and debtors' chief executive officer George Kassiotis, an affiliate of One Investments.

Omega obtained court approval to turn its vessels over to the senior lenders in exchange for certain consideration.

The company withdrew its joint plan of reorganization and related disclosure statement in December.

Equity sale

The equity interests for sale include

• Omnicrom Holdings Ltd., a Marshall Islands company that is a joint venture in two non-debtor joint venture holding companies: Stone Shipping Ltd. and Onest Shipping Ltd. The other partner is Topley Corp.

Stone wholly owns Blizzard Navigation Inc., and Onest wholly owns Tornado Navigation Inc.

Blizzard is the owner of the vessel Omega Duke. Tornado is the owner of the vessel Alpine Marina;

• Omega Investments Ltd., a Marshall Islands company, wholly owned subsidiary of Omega and 80% owner of OD Investment Ltd.

Delos Shipping Ltd., with its affiliate Delos Megacore, LLC, a non-affiliated non-debtor third party and owner of the remaining 20% interest in OD.

OD owns three subsidiaries: Fire Navigation Inc., Hurricane Navigation Inc. and Rain Navigation Inc.

Fire owns the Megacore Honami. Hurricane owns the Megacore Philomena. Rain owns the Megacore Panthea; and

• Omega Management, Inc., a Marshall Islands company, wholly owned subsidiary of Omega and the commercial and technical manager for all eight of Omega's vessels.

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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