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URL:  http://boards.fool.com/actually-i-have-no-idea-on-the-value-of-the-29510116.aspx

Subject:  Re: Shipping Websites?? Date:  8/29/2011  11:44 PM
Author:  MorrieSeaCreatur Number:  2323 of 3127

Actually I have no idea on the value of the tankers its why I went looking for this board in an attempt to learn more and figure out what its truely worth. When I saw a BK filing for a company with such high assets vs liabilities and a plan for postive cash flows for July it made no sense to me. Its why I wanted to look further as its so strange.

Per their BK they have 8 tankers.

They also have a joint venture with another greek shipper (Danaco) of which they owned 80% and Danaco owned the other 20%. This JV had 2 ships with 2 under contract to be built and I believe that ONAVQ was responsible for the cost of the 1st new vessel on its own. My guess is this BK filing was to release them from this as well. Well, Danaco just bought the 80% of the JV for $31M. Assuming that these vessels are similar between these two and the other 8 tells me that the other 8 vessels are only worth $155M clearly less than their liabilites and extrememly less than the $500M they have listed as assets. The bank states that there is a value in Chapter 7 worth $239 vs the $242M loan which is pretty close to the value but excludes a bunch of other debt they have. Again, I think it probably is a zero but I'm trying to learn more about the industry and this is a good way for me to do that. If you assume the $31M they get for the 2 ships are used to reduce their debt that leaves $211M in debt vs valuation of the 8 with $155M or like you said a huge gap.

Do you know of a way to find out if certain ships are under contract and the terms of those ships?

Product Tanker Vessels
Omega Lady Miriam -2003 - DWT 71,500 Ice 1C
Omega Lady Sarah - 2004 - DWT 71,500 Ice 1C
Omega Queen - 2004 - 74,999
Omega King - 2004 - 74,999
Omega Emmanuel - 2007 - 73,000 Ice 1A
Omega Theodore - - 73,000 Ice 1A

HandyMax Product Tankers
Omega Prince - 2006 - 36,680 Ice
Omega Princess - 2006 - 36,680 Ice

They also have a joint venture called MegaCore with 7 ships in varying stage of construction and 2 in operation but that was cancelled before they filled for BK (I have no idea how one just does that?)

Per a company presentation from 2010 three of the 8 ships were what appears to be a time charter and part of a pool. Two more on spot charters and 2 expiring in Summer 2012 and one the back in 2011 that I have no idea on. Can you explain the difference between spot charters and this description;
Time charter, on evergreen basis with 2 months termination notice, rate being the monthly average TCE of a pool of 9 similar vessels

http://www.omeganavigation.com/files/onavjeff090810.pdf

Thanks for this forum and I've been reading a bunch trying to learn. Appreciate any help.
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