Omega Navigation Enterprises and Certain Subsidiaries File for Reorganization Relief Under Chapter 11
08 Juli 2011 - 5:00PM
Marketwired
Omega Navigation Enterprises Inc. (NASDAQ: ONAV) announced today
that it and certain of its subsidiaries have filed voluntary
petitions under Chapter 11 of the U.S. Bankruptcy Code with the
U.S. Bankruptcy Court for the Southern District of Texas (Houston).
The Company believes that the Chapter 11 process will facilitate
restructuring, which is designed to restore the Company to
long-term financial health.
The Company believes that in light of the unwillingness of its
Senior Lenders to work with Omega on an out-of-court restructuring
of its Senior Loan Agreement, the Company needs the protection of
Chapter 11 to ensure the uninterrupted operation of its vessels and
services to its customers. The Company is disappointed in the
Senior Lenders' intransigence and has commenced litigation against
them in Greece. The Company wishes to assure its customers and
suppliers that Omega will continue to operate in the ordinary
course of business during its Chapter 11 proceedings.
The Chapter 11 filings include the following companies and
vessels: Omega Navigation Enterprises, Inc.; Omega Navigation (USA)
LLC; Galveston Navigation Inc (the Omega Lady Miriam); Beaumont
Navigation Inc (the Omega Lady Sarah); Carrolton Navigation Inc
(the Omega Prince); Decatur Navigation Inc (the Omega Princess);
Elgin Navigation Inc (the Omega Queen); Fulton Navigation Inc (the
Omega King); Orange Navigation Inc (the Omega Emmanuel); and
Baytown Navigation Inc (the Omega Theodore).
The Chapter 11 filings do not include Omega Management Inc, the
Company's technical vessel manager, nor does it include the
Company's wholly-owned subsidiary Omnicrom Holdings Ltd, which
indirectly owns a 50% interest in each of the vessels Omega Duke
and Alpine Marina through two separate joint venture entities, or
Omega Investments Inc, which owns 80% of OD Investment Inc, the
owner of the vessels Megacore Honami, Megacore Philomena and of
Hull 2295 (under construction) and Hull 2299 (under
construction).
In addition, as separately announced by the Company, effective
July 1, 2011, the Company's joint venture with Topley Corporation,
named Megacore Shipping Ltd., was terminated. This termination will
have no effect on the Chapter 11 proceedings.
Omega's principal legal advisor for the restructuring process
and Chapter 11 proceedings is Bracewell and Giuliani LLP. The
Company's financial advisor is Jefferies & Company, Inc.
Additional information about the reorganization will shortly be
available at www.omeganavigation.com.
Safe Harbor Statement
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
One can identify these forward-looking statements by the use of
words such as "expect," "believe," "planning," "possibility,"
"opportunity," "goal," "will," "may," "intend," "anticipates,"
"working toward" and other words of similar meaning. One can also
identify them by the fact that they do not relate strictly to
historical or current facts. These statements are subject to risks
and uncertainties that could cause actual results and plans to
differ materially from those included in the Company's
forward-looking statements.
These risks and uncertainties include but are not limited to (i)
the ability of the Company to continue as a going concern, (ii) the
Company's ability to obtain Bankruptcy Court approval with respect
to motions in the Chapter 11 cases, (iii) the ability of the
Company and its subsidiaries to prosecute, develop and consummate
one or more plans of reorganization with respect to the Chapter 11
cases, (iv) the effects of the Company's bankruptcy filing on the
Company and the interests of various creditors, equity holders and
other constituents, (v) Bankruptcy Court rulings in the Chapter 11
cases and the outcome of the cases in general, (vi) the length of
time the Company will operate under the Chapter 11 cases, (vii)
risks associated with third party motions in the Chapter 11 cases,
which may interfere with the Company's ability to develop and
consummate one or more plans of reorganization once such plans are
developed, (viii) the potential adverse effects of the Chapter 11
proceedings on the Company's liquidity or results of operations,
(ix) the ability to execute the Company's business and
restructuring plan, (x) increased legal costs related to the
Company's bankruptcy filing and other litigation, and (xi) the
Company's ability to maintain contracts that are critical to its
operation, to obtain and maintain normal terms with its vendors,
landlords and service providers and to retain key employees. In the
event that the risks disclosed in the Company's public filings and
those discussed above cause results to differ materially from those
expressed in the Company's forward-looking statements, the
Company's business, financial condition, results of operations or
liquidity, and the interests of creditors, equity holders and other
constituents, could be materially adversely affected.
Contacts: Company Contact: Gregory A. McGrath Chief Financial
Officer Omega Navigation Enterprises, Inc. PO Box 272 Convent
Station, NJ 07961 Tel. (551) 580-0532 E-mail:
gmcgrath@omeganavigation.com www.omeganavigation.com Investor
Relations / Financial Media: Nicolas Bornozis President Capital
Link, Inc. 230 Park Avenue, Suite 1536 New York, NY 10169 Tel.
(212) 661-7566 E-mail: nbornozis@capitallink.com
www.capitallink.com
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