GEO Specialty Chemicals fails to pay coupon within grace period, in default

New York, March 5 - GEO Specialty Chemicals Inc. said it is in default on its 10 1/8% senior subordinated notes and its senior credit facility after failing to make the interest payment on the bonds scheduled for Feb. 2 within the 30-day grace period.

The company has $120 million of the notes outstanding.

The Cleveland chemical company said it is continuing negotiations with its senior lenders and a group representing the majority by value of its notes about a financial restructuring.

"Our senior lenders and bondholders remain at the negotiating table with us with the objective of promptly finalizing the restructuring of GEO's finances in the coming weeks," said president and chief executive officer George Ahearn in a news release.

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