Omega Navigation wins OK of disclosure statement for liquidation plan

By Caroline Salls

Pittsburgh, March 19 - Omega Navigation Enterprises, Inc.'s disclosure statement for its first amended plan of liquidation was approved Tuesday by the U.S. Bankruptcy Court for the Southern District of Texas.

The plan confirmation hearing is scheduled for April 22.

Treatment of creditors under the plan will include the following:

• Administrative claims will be paid in full;

• Senior lender claims are preserved for the sole purpose of finalizing the transfer of vessels and all other property to be transferred to them under a settlement.

Upon the completion of the transfers, the claims will be automatically deemed released;

• To the extent of a junior lender claim assets adequate protection rights and there is no objection, those rights will be allowed and paid out of available amounts.

If there is an objection to the rights, they will be paid out of available amounts as the court determines;

• To the extent the Kassiotis priority claim is allowed, it will be paid in full. To the extent a Kassiotis pre-bankruptcy claim and severance claim are allowed, they will be treated as general unsecured claims;

• Holders of general unsecured claims will receive a share of any available amounts;

• Intercompany claims will be cancelled;

• Indemnification claims will be cancelled, conditioned on release provisions. However, if the court does not approve the applicable release provisions, all indemnification claims will be preserved, and there will be no general unsecured claim distributions until the court enters an order resolving all indemnification claims; and

• Interests will be cancelled, and holders will receive no distribution.

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.