Inclusion Criteria

DISEASE CHARACTERISTICS:

- Histologically confirmed colorectal cancer

- Radiologic evidence of advanced disease

- At least 1 measurable lesion at least 20 mm OR at least 10 mm by spiral CT scan

- Indicator lesions in a previously irradiated field are allowed provided the
irradiated lesion has clearly progressed OR a new lesion has developed in the
irradiated field

- Failed 1, and only 1, line of prior chemotherapy for advanced/metastatic disease

- Disease progression during chemotherapy OR within 6 months after completion of
treatment

- No symptomatic brain metastases meeting any of the following criteria:

- Unstable

- Inadequately controlled with fixed-dose oral steroids

- Potentially life-threatening

- Required radiotherapy with the past 28 days

PATIENT CHARACTERISTICS:

Age

- 18 and over

Performance status

- ECOG 0-2

Life expectancy

- Not specified

Hematopoietic

- Neutrophil count > 1,500/mm^3

- Platelet count > 100,000/mm^3

Hepatic

- AST and ALT < 2.5 times upper limit of normal (ULN) (5 times ULN if liver metastases
are present)

- Bilirubin < 1.5 times ULN

- No hepatitis

- No cirrhosis

Renal

- Creatinine < 1.5 times ULN

Other

- Not pregnant

- Negative pregnancy test

- Fertile patients must use effective contraception during and for 3 months after study
participation

- HIV negative

- No preexisting neuropathy ≥ grade 2

- No active or uncontrolled infection

- No other serious illness or medical condition

- No chronic alcohol abuse

- No known hypersensitivity to systemic liposomal formulations or compounds chemically
related to OSI-7904L or oxaliplatin

- No prior psychiatric or neurologic condition that would preclude study compliance or
giving informed consent

PRIOR CONCURRENT THERAPY:

Biologic therapy

- At least 21 days since prior immunotherapy

- At least 21 days since prior monoclonal antibody therapy

Chemotherapy

- See Disease Characteristics

- At least 21 days since prior chemotherapy and recovered*

- No prior oxaliplatin NOTE: *Alopecia allowed

Endocrine therapy

- See Disease Characteristics

- At least 21 days since prior hormonal therapy

Radiotherapy

- See Disease Characteristics

- At least 21 days since prior radiotherapy and recovered

- No prior radiotherapy to more than 25% of bone marrow reserve

Surgery

- Recovered from prior surgery

Other

- At least 21 days since prior tyrosine kinase inhibitor therapy

- More than 21 days since prior investigational agents

- No other concurrent anticancer therapy

- No other concurrent investigational agents