Oglebay Norton gets interim order extending debtor-in-possession financing

By Jeff Pines

Washington, March 23 - Oglebay Norton Co.'s interim order for its debtor-in-possession financing was extended by a court order.

A final hearing to approve the full $75 million of the proposed facility was scheduled for March 22 but everyone involved, which includes the company, debtor-in-possession lenders, the pre-petition secured lenders, the committee of unsecured creditors and the ad hoc committee of senior secured noteholders agreed to adjourn until a compromise acceptable to everyone could be worked out.

While they try to resolve the issues, the March 23 order allows the company to continue to borrow on the facility and use cash collateral.

Among the objections, the ad hoc committee objects to the size of the facility and that the company has not shared financial information it has shared with the lenders.

A final hearing is scheduled for April 7.

Oglebay Norton, a Cleveland-based industrial minerals and aggregates company, filed for Chapter 11 on Feb. 23. Its Chapter 11 case number is 04-10558.

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