Oglebay Norton files response to critics, amends plan

By Jeff Pines

Washington, July 26 - Oglebay Norton Co. responded to criticisms of its disclosure statement and reorganization plan and filed an amended statement and plan Friday with the U.S. Bankruptcy Court for the District of Delaware.

The company said the ad hoc committee of secured noteholders' objection is now moot because the Cleveland-based minerals company reinstated the notes, which means they are no longer an impaired class.

As for the objection about there being insufficient information about a proposed offer to buy Oglebay Norton for $451 million, the company said it added a section discussing the offer.

The company will not support the purchase because the prospective group of buyers, which includes bondholders Nufleet LLC and CapitalWorks LLC, is not willing to assume the company's liabilities.

Without the assumption of liabilities, Oglebay Norton is confident its own plan will give creditors a better recovery than if it accepted the $451 million offer.

Both a group of shareholders and the prospective purchasers group objected to the reorganization plan because it lacked information about personal injury claims related to asbestos and silica and the insurance to cover those claims.

The company believes neither has the standing to object because neither has anything at stake. It also said it did provide enough information in the first disclosure statement but it added another section to the second plan to respond to the objections.

The creditors' committee conducted an independent review of Oglebay Norton's insurance coverage and decided the company has adequate insurance, it said.

"Notably, the tort claimants have not objected to the disclosure statement on this or any other basis," Oglebay Norton said.

A July 27 hearing is scheduled.

Olgebay Norton filed for bankruptcy on Feb. 23. Its Chapter 11 case number is 04-10558.

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