Two bidders seek halt to Omega Navigation securities sale, win assets

By Jim Witters

Wilmington, Del., March 5 - Two companies are seeking to halt a securities sale by Omega Navigation Enterprises, Inc. and are submitting what they say is a "higher and better offer" for the debtors' equity interests in Omega Investments Ltd., according to documents filed March 5 with the U.S. Bankruptcy Court for the Southern District of Texas.

Joint bidders Oxygen Maritime Inc. and One Investments Inc. filed an emergency motion for a hearing to negate the sale of the interests to Delos Megacore LLC.

They say the Delos sale - approved by the court on Feb. 25 - is scheduled to close quickly, possibly as soon as March 5.

No hearing has been scheduled.

The joint bidders say their proposal provides "at least $150,000 in additional assets that may be distributed to holders of allowed claims."

In addition, "Delos is in clear breach of its obligations" regarding the purchase, the bidders say.

"The terms for the sale ... that were approved by the court ... have changed to the significant detriment of these estates and in a manner that violates the provisions of the Delos asset purchase agreement, the Delos sale order, the bidding procedures order and the bidding procedures," the filing states.

The changes support the emergency relief sought by the joint bidders and "authorize the court to vacate or reconsider the Delos sale order," the motion says.

As previously reported, the stalking horse bid submitted by Delos Megacore LLC was selected as the prevailing bid for the Omega Investments interests, and a joint bid submitted by Oxygen Maritime and One Investments was selected as the prevailing bid for the Omnicrom Holdings Ltd. and Omega Management, Inc.

A joint bid by Oxygen Maritime and One Investments covering all three sets of interests had been selected as the backup bid for the Omega Investments interests.

Delos agreed to pay $2 million for the Omega Investments interests, minus the amount of any holdback not returned to the seller.

The joint bidders offered to pay a total of $110,000 for all three sets of interests, including $50,000 for the Omega Investments interests, $50,000 for the Omnicrom interests and $10,000 for the Omega Management interests.

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.