Omega Navigation Enterprises Defeats Lender Motions
Friday, 23 December 2011 | 00:00
Omega Navigation Enterprises Inc. announced that, in connection with its Chapter 11 proceedings in Houston, Texas, the Court has denied
the motion from the Senior Lenders to dismiss or convert the Chapter 11 cases and the separate motion for relief from the automatic stay granted in Chapter 11 proceedings. This favorable decision will enable Omega to formulate a reorganization plan for emergence from Chapter 11.
The Court also entered a separate order criticizing the Senior Lenders for alleging that Omega had acted in bad faith, finding that the evidence was clear that Omega had acted in good faith with respect to each of the allegations.
Omega, while under the protection of the Court has:
• The right to continue to operate and pay all operating expenses in the ordinary course
• The right to continue to pay employees and crew in the ordinary course
• The right to continue all cash management procedures in the ordinary course
• The right to continue to maintain all insurance in the ordinary course
Omega continues to generate sufficient cash for operations and will continue to honor all of its charter obligations during the pendency of the court protection. Omega believes the Chapter 11 reorganization process will help the Company facilitate a restructuring of its balance sheet and is working towards exiting Chapter 11 as a financially stronger entity that will be positioned to enjoy future growth based on the strength of its existing modern fleet of product tanker vessels.
Additional information and a list of frequently asked questions and answers relating to the reorganization process and procedures is posted on our website www.omeganavigation.com.
Source: Omega Navigation
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