Omega Navigation: Court denies Delos motion for $100,000 breakup fee

By Caroline Salls

Pittsburgh, April 22 - Delos Megacore Ltd.'s motion for payment of a breakup fee in connection with the sale of Omega Navigation Enterprises, Inc.'s Omega Investments, Ltd. equity interests was denied Monday by the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, Omega Navigation objected to Delos' request for payment of the $100,000 breakup fee.

By forcing through a $750,000, or 37.5%, reduction in its purchase price, Omega said Delos chose not to perform under its original asset purchase agreement.

"This renegotiation vitiated the breakup fee requirement and changed the factual basis relied on by this court in approving the breakup fee," the company said in its objection.

In addition, Omega said the renegotiation forced it to incur substantial additional professional fees.

"The motion further errs in asserting that an 8.33% break-up fee is actually only a 2.5% break-up fee, thus underscoring that Delos is continuing to play games with this court," the objection said.

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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