Oglebay Norton bondholders to get 25.6% of reorganized company

By Jeff Pines

Washington, Nov. 17 - Oglebay Norton Co.'s reorganization plan was confirmed Tuesday after resolving the judge's concerns over the company's insurance.

The percentages of who will get what have changed slightly since Prospect News last reported on the Cleveland-based minerals and aggregates company's plan.

Bondholders will get 25.6% of the reorganized company's equity.

Investors holding $40.32 million of the subordinated notes agreed to buy $85 million of preferred stock in the reorganized company by exercising rights for 8.5 million shares of the preferreds.

The preferred stock will be convertible into a 74.4% stake. Oglebay Norton will net $80 million from the rights offering.

Shareholders will get warrants to buy 523,869 shares. For every 10 shares held, a shareholder will get one warrant to buy a share for $10. The warrants expire 30 days after the issue date.

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

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