Omega Navigation Enterprises Defeats Lender Motions

HOUSTON, TX--(Marketwire - Dec 21, 2011) - Omega Navigation Enterprises Inc. (PINKSHEETS: ONAVQ) announced today that, in connection with its Chapter 11 proceedings in Houston, Texas, the Court has denied the motion from the Senior Lenders to dismiss or convert the Chapter 11 cases and the separate motion for relief from the automatic stay granted in Chapter 11 proceedings. This favorable decision will enable Omega to formulate a reorganization plan for emergence from Chapter 11.

The Court also entered a separate order criticizing the Senior Lenders for alleging that Omega had acted in bad faith, finding that the evidence was clear that Omega had acted in good faith with respect to each of the allegations.

Omega, while under the protection of the Court has:

• The right to continue to operate and pay all operating expenses in the ordinary course
• The right to continue to pay employees and crew in the ordinary course
• The right to continue all cash management procedures in the ordinary course
• The right to continue to maintain all insurance in the ordinary course

Omega continues to generate sufficient cash for operations and will continue to honor all of its charter obligations during the pendency of the court protection. Omega believes the Chapter 11 reorganization process will help the Company facilitate a restructuring of its balance sheet and is working towards exiting Chapter 11 as a financially stronger entity that will be positioned to enjoy future growth based on the strength of its existing modern fleet of product tanker vessels.

Additional information and a list of frequently asked questions and answers relating to the reorganization process and procedures is posted on our website 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 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 Chapter 11 filing on the Company and the interests of various creditors, equity holders and other constituents, (v) 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 Chapter 11 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.