Oglebay Norton fails to pay coupon within grace period

By Peter Heap

New York, Aug. 29 - Oglebay Norton Co. said it did not make the interest payment due Aug. 1 on its 10% senior subordinated notes maturing 2009 within the 30-day grace period.

The Cleveland minerals and aggregates company said it remains in negotiations with its bank group and senior secured note holders over amendments.

Oglebay Norton added that once the amendments are completed it will pay the deferred interest "as soon as practicable."

"Despite the best efforts of all parties, we have not yet been able to reach agreements with our bank group and senior secured note holders; however we continue to make progress," said Oglebay Norton president and chief executive officer Michael D. Lundin, in a news release.

The company continues to operate with cash flow from operations while it negotiates with the senior secured lenders.

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