Oglebay Norton takes crucial first steps toward restructuring
Oglebay Norton Company, parent company of Michigan Limestone Operations Inc. of Rogers City, said last week it had entered into agreements with its bank group and senior secured note holders to amend its credit agreements. The amendments provide the company with relief on restrictive covenants and restore the company’s ability to draw on its credit facility to fund operations and make the interest payment due on its 10 percent, 2/1/09 Senior Subordinated Notes.
“A lot of hard work from all sides went into achieving mutually acceptable amendments to these credit agreements. We appreciate the strong support we received from our bank group and senior secured note holders,” said Oglebay Norton President and Chief Executive Officer Michael D. Lundin. Lundin said the amendments represent a crucial first step toward a successful restructuring of the company. The company intends to make the interest payment as soon as practicable, subject to notice and new record date requirements under the indenture governing the notes.
Lundin said the company will engage Lazard Freres Company as its financial restructuring adviser. “Lazard will be working with us on our financial structure to
Lundin continued, “Achieving these agreements with our senior secured lenders enables us to move forward with our business plan. As we previously stated, in addition to permanently reducing long-term debt, the plan calls for ongoing cost reductions, asset sales and capitalizing on new business opportunities. ?We believe the most significant new business opportunities are in our limestone and limestone fillers operations.”
Oglebay Norton Company, a Cleveland, Ohio-based company, provides essential minerals and aggregates to a broad range of markets, from building materials and home improvement to the environmental, energy and metallurgical industries.