Nufleet asks court to appoint Chapter 11 trustee for Oglebay Norton

By Jeff Pines

Washington, Oct. 26 - Nufleet LLC, an Oglebay Norton Co. creditor, wants the court to appoint a Chapter 11 trustee, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Earlier this month, Nufleet asked the court to convert the Cleveland-based minerals company's Chapter 11 case to a Chapter 7 liquidation.

Nufleet, which is offering to acquire Oblebay Norton for $496 million and the assumption of $50 million of benefit liabilities, believes a trustee is needed because Oglebay Norton's has not dealt fairly with the asbestos and silica tort claims, has not proposed a confirmable plan, has ignored Nufleet's offer to buy the company, and has "frustrated every attempt of the Nufleet consortium to acquire reasonable due diligence regarding its purchase offer."

Nufleet estimates a liquidation would give creditors at least 41.9 cents on the dollar compared with the company's plan of 27.7 cents on the dollar.

A hearing on converting the case to a Chapter 7 liquidation and on appointing a trustee is scheduled for Nov. 15.

Oglebay Norton filed for bankruptcy on Feb. 23, 2004. Its Chapter 11 case number is 04-10558.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.