Share us on: Twitter Facebook LinkedIn By Linda Chiem Law360, New York (January 04, 2013, 1:47 PM ET) -- Two junior secured creditors of Greek oil shipper Omega Navigation Enterprises Inc. on Thursday objected to motions in Texas bankruptcy court to approve settlements with senior lenders and insiders, saying a proposal to give away three Omega investments companies to principal George Kassiotis is unfair.

In their objection, NIBC Bank N.V. and BTMU Capital Corp. say they were unfairly shut out of any settlement negotiations and never relinquished their claim to $36 million in underlying debt in two settlement agreements Omega submitted to the bankruptcy court...

Oil transportation company Omega Navigation Enterprises of German Nordbank (HSH Nordbank) and of Greece George Kassiotis control of the end of the 17 month long negotiation process finally reached the bankruptcy reorganization agreement.

Under the agreement, the former will be the recovery of the latter in the hands of in eight tankers under the protection of Chapter 11 of the (US) federal bankruptcy law latter the former cash payment of $ 5,300,000 or the end of a lawsuit between the two sides former need to bear attorneys’ fees of all negotiating parties unsecured creditors were subordinated to $ 500,000 junior creditors of Tokyo-Mitsubishi UFJ Bank, BTMU and Dutch investment bank NIBC crop failure.

This calculation, the north bank to obtain ownership of eight tankers priority will have to spend more than 12 million US dollars heavily also on hand grip with loans outstanding of $ 242 million, and since 2011 these loans do not have a child interest returns.

As of Wednesday night, the agreement has yet to form a formal legal document, but the relevant agreement is likely to be signed in the near future in the the Karen Brown Law bankruptcy court in Houston.

Involved in the Omega bankruptcy hearing Evan Flaschen, partner of the law firm of Bracewell & Giuliani, said the agreement actually reached, this should be regarded as a fair and reasonable result for the case.

However, an involved person familiar with the expression on a relatively bleak view, he believes that the case “a waste of valuable time of all protocols, and half of this year, the value of the assets of the ship all the way down, Omega make banks loss of tens of millions of dollars.

Involved parties that after the agreement is reached, Omega empty-handed, penniless, which spared no effort and had bank For liquidation Omega effect no different.

The agreement will not go to the voting procedure, according to the provisions of Chapter 11 of the bankruptcy law, the trial judge ruled that the final agreement, eliminating the need for the parties to the endless debate.

Unsecured creditors only nod Omega HSH reached restructuring agreement, or about to hand $ 500,000 were missing.

Case, the primary creditor to lend $ 36 million, the same since 2011, not a single cent interest credited to their repayment of debt in a perilous position, but there is a pending trial may bring great uncertainty for the Restructuring Agreement signed sex. December 21 Judge Brown junior creditors will be better than the other creditors “super-priority” application.

Omega also said that dates back to 2008, a so-called coordination agreements reached between the the the senior creditor banks and the primary creditor banks so that the latter $ 36 million loan the moment “cheapening” for the subordinated debt, making it legally does not have any priority advocate the rights of this part of the debt.

Primary creditor banks to reverse the verdict of the whole to rely on the ruling of Judge Brown is expected to the north bank and secondary bank will also open up another legal battleground in this battle and may go beyond the jurisdiction of US law. In any case , the bankruptcy next month, will come to an end.

In view of the agreement between Omega and HSH must be signed prior to the hearing on January 9, therefore, if all goes well, Omega after another from that day hand over the hands capacity. At this point, from bankruptcy on July 8 last year after a full 18 months of difficult negotiations, consultations after the final full stop.