Omega Navigation amended plan of liquidation effective as of May 22

By Caroline Salls

Pittsburgh, May 23 - Omega Navigation Enterprises, Inc.'s second amended plan of liquidation took effect on Wednesday, according to a filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The plan was confirmed on Tuesday.

As previously reported, the plan incorporates three settlements, including a settlement related to the junior lenders' renewed motion for a superpriority administrative expense claim and all other junior lender claims; a settlement related to the claims of and proposed releases for the benefit of released directors, officers and other insiders; and the settlement of any objections that estate parties may have against any professionals' fees.

Creditor treatment

Treatment of creditors under the second amended 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;

• Junior lenders' adequate protection claims will be paid out of available amounts in priority to all other claims.

Junior lenders will receive no distribution on account of their deficiency claims;

• As full consideration for being included in release provisions, creditors in the released related persons class, which replaced the Kassiotis priority claims class included in the first amended plan, will receive no distributions under the plan;

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

• Intercompany claims will be cancelled; 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.

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