Oglebay Norton second reorganization plan denied confirmation

By Jeff Pines

Washington, Oct. 6 - Oglebay Norton Co.'s second reorganization plan failed to win confirmation, according to a late Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Judge Joel Rosenthal denied confirmation because of issues related to insurance for the company's tort liability claims, the company said.

Oglebay Norton said it would enter more evidence on the matter. The company's next regularly scheduled hearing is Oct. 28.

According to Oglebay Norton, Rosenthal said the plan was otherwise feasible.

Nufleet LLC and some of the company's mass tort claimants had objected that Oglebay Norton's reorganization plan failed to meet the best interests of the creditors test.

Nufleet said its offer to buy Ogleybay Norton would give creditors an estimated recovery of 41.9 cents on the dollar, whereas the company's plan would give creditors between 24 and 27.7 cents on the dollar. Nufleet is offering $496.57 million in cash and the assumption of $50 million of liabilities.

The Cleveland-based minerals and aggregates company filed for bankruptcy on Feb. 23, 2004. Its Chapter 11 case number is 04-10558.

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