Bracewell & Giuliani LLP is currently serving as Chapter 11 counsel to Athens-based Omega Navigation Enterprises, Inc.  In what industry observers are calling a “landmark victory” after more than 5 months of “bet the company” litigation, the United States Bankruptcy Court for the Southern District of Texas has rejected motions to dismiss or convert Omega’s chapter 11 cases or for relief from stay filed by Omega’s Senior Lenders and supported by Omega’s Junior Lenders and Unsecured Creditors’ Committee.

The Court also issued an Order to show cause as to whether the Senior Lenders and their counsel, the Junior Lenders and the Creditors’ Committee should be sanctioned for certain conduct in connection with the litigation that the Court characterized as, among other things, “a reckless disregard for truth and an intentional strategy to delay and impede the bankruptcy proceedings.”

According to Lloyd’s List – a leading publication in the maritime industry – Omega “scored a landmark victory in its Chapter 11 battle against senior lender HSH Nordbank in Houston, setting an extraordinary precedent for other foreign shipping companies seeking refuge from unpaid banks through the U.S. bankruptcy courts.”

Bracewell attorneys who worked on the matter include:

Partners: Evan D. Flaschen, William A. (Trey) Wood and Gregory W. Nye

Associates: Jason G. Cohen and Ilia M. O’Hearn