NEW YORK--(BUSINESS WIRE
)--Oct. 20, 2005--On October 6, 2005, Judge Allan L. Gropper of the United States Bankruptcy Court for the Southern District of New York (Docket No. 515) entered a judgment of $920,000 plus $478,108 in fees and costs against each of Cambridge Gas Transport Corporation, the largest shareholder of chapter 11 debtor Navigator Gas Transport PLC and its affiliated debtor entities, Giovanni Mahler of Lugano, Switzerland and Shaun Fergusson Cairns of the Isle of Man, directors of Cambridge and Navigator. The Court imposed these liabilities as a result of violations by Cambridge, Mahler and Cairns of a March 17, 2004 order confirming the chapter 11 plan of reorganization for Navigator proposed by the Official Committee of Unsecured Creditors. Virtually every creditor supported the Committee's plan and rejected Navigator's proposed plan to sell the companies' assets to insiders. The judgment also is for sanctions arising from a petition filed by Cambridge and the directors in the Isle of Man contesting implementation of the Committee's plan, which petition the Bankruptcy Court found to be a direct violation of the confirmation order.
In addition Judge Gropper entered judgments against each of Navigator Gas Management Limited ("NGML") and Mahler and Cairns as directors of NGML in the amount of $2.3 million and $462,768 in fees and costs for opposing winding up proceedings commenced by members of the Committee in the Isle of Man authorized pursuant to the Bankruptcy Court's order dated December 10, 2004.
The entry of these judgments brings the total amount of judgments entered to date against each of Mahler and Cairns to $13,849,364, the total amount of judgments entered to date against Cambridge to $8,584,281 and the total amount of judgments against NGML to $5,265,083. Interest on these unpaid judgments and ongoing sanctions continue to accrue against Cambridge, NGML, Mahler and Cairns on a daily basis. The Committee has announced that it intends to pursue all means available to collect the sanctions and to pursue other remedies arising from the clear violation of law by Cambridge, NGML and the directors.