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Author: MorrieSeaCreatur Three stars, 500 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3059  
Subject: Re: Shipping Websites?? Date: 8/29/2011 7:28 PM
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Thanks for the link.

I am just starting to do some reading/information gathering on ONAVQ (Omega Nav) in the BK process. I've found that sometimes some money can be found looking in the scrap heap and this is an interesting case which I am still trying to figure out. (I am going off of this at work and not at home where my files are so names and $ figures are out)

I am wondering if you can shed any light on this industry/company for me. Quick look at the financials seems very odd to me in that the listed assets were $500M+ vs $275M in liabilities and the forecasted MOR for July showed them cash flow positive. Both strange, no?

Second the creditors is basically only 1, HSH Nordbank. This seems to be a deal that is shaping up to be a dispute where basically the shipper is trying to renegotiate a lower lease/writeoff some of the priciple.

Then there was this article from Friday.

HSH seeks ONE liquidation
SENIOR lender HSH Nordbank has formally moved to dismiss the ONE Chapter 11 case or convert it to Chapter 7 liquidation.
“There is no basis to continue in Chapter 11,” affirmed the bank in a pivotal filing late yesterday. “There is no possibility of rehabilitation.”
Senior creditors will “surely” not approve Omega Navigation Enterprises’s rehabilitation plan, the filing asserted, declaring: “Creditor resistance is immutable.”
According to HSH, the senior creditor group’s claim ($242.7M) already exceeds the current value of ONE’s fleet – which the bank’s appraiser estimated to be $239M.
“The value of the ships is diminishing,” underscored HSH, which also argued that Greece-based ONE has “no meaningful US contacts”.
Thus, the Texas bankruptcy court “should not embroil itself in what is essentially a two-party foreign dispute”.
The bank claimed that ONE’s rehabilitation strategy “is nothing more than a play for time” on the hope that the cycle rebounds.
“The debtors are in effect gambling on a market turnaround,” it said. “Chapter 11 may not legitimately be used to wait out the cyclicality of the market at the expense of and sole risk to senior creditors.”
Commenting on lawsuits filed by ONE against HSH in Greece, the bank argued that “the debtors may not avoid dismissal or conversion by relying on such ancillary litigation, which could take years to resolve”. HSH reported that “the first scheduled hearing [in the Greek litigation] is in 2013”.
The bankruptcy court cannot allow ONE “to wallow in Chapter 11” until the “frivolous” Greek litigation is resolved, concluded HSH, which added: “Those claims can be analysed and pursued by a Chapter 7 trustee.”

Basically, it looks like my thought was correct and it appears that Omega was trying to use Chapter 11 to wait out this industry issues and get a better deal. HSH seems to be saying that they will take the boats. Any idea on where I can get a decent idea of real, realistic liquidation costs? I'm guessing that there seems to be an oversupply, excess debt and very likely few people willing to buy these assets leaving any distribtution to shareholders if they did go Chapter 7 which I don't think they want. The weird part and what actually excited me at first was on BK filing the stock didn't crater.
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