Oglebay Norton intends to find restructuring plan that has value for all stakeholders

By Carlise Newman

Chicago, Oct. 23 - Oglebay Norton Inc. said Thursday it intends to find a restructuring plan that will provide value for all stakeholders.

Although he would not provide details, president and chief executive officer Michael Lundin said the company is exploring all alternatives since retaining Lazard Freres Co. as its financial restructuring adviser on Sept. 12.

The company added that it is actively seeking buyers for some of its assets.

"It's premature to discuss details, but we have found some alternatives within our restructuring process. We intend to find an alternative that has value for all stakeholders, and we believe it is possible. But that's only one of the alternatives we're looking at," Lundin said in a conference call to investors.

Oglebay Norton also said as of Sept. 30, it had $129 million outstanding under its revolving credit facility, $3.9 million of which is available, and $10.6 million outstanding in letters of credit. When asked, the company would not disclose figures as of Oct. 23.

On Sept. 12, Oglebay Norton reached an agreement with its bank lenders and senior secured note holders to amend its credit facility, providing relief on restrictive covenants and restoring the ability to draw on the facility to fund operations and make the interest payment due on its 10% senior subordinated notes due Feb. 1, 2009. The company had previously missed the coupon, which was originally scheduled for Aug. 1.

Oglebay Norton is a Cleveland provider of essential minerals and aggregates.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.