Oglebay waivers expire, talks continue

New York, Aug. 15 - Oglebay Norton Co. said the waivers on its senior secured debt expired Friday without extension but added that active negotiations continue with its bank lenders and senior secured note holders.

"While we are disappointed that we were not able to reach definitive agreements before the waivers expired, we continue to believe that mutually acceptable long-term agreements can be achieved," said Oglebay Norton president and chief executive officer Michael D. Lundin, in a news release.

The company added that it will continue to operate using cash flow from operations.

"This is the time of year when we are the busiest, and our cash flow is the strongest," Lundin noted.

Meanwhile negotiations will continue and the company will expore "all other strategic options."

The Cleveland minerals and aggregates company did not make the coupon payment due Aug. 1 on its 10% senior subordinated notes due 2009, invoking the 30-day grace period. It said it decided not to make the interest payment because of its ongoing discussions with bank lenders and senior noteholders.

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