Cleveland-based Oglebay Norton Company reported that United States Bankruptcy Judge Joel Rosenthal of the U.S. Bankruptcy Court for the District of Delaware has declined to confirm the company’s joint amended plan of reorganization.
While he reportedly agreed that the plan was feasible in every other regard, he said he had not heard evidence to address his concerns related to insurance for tort liability claims. The company said it would file a motion with the court to put on more evidence on this matter. The next regularly scheduled hearing is scheduled for Oct. 28 in Delaware.
“We obviously are disappointed with the ruling today, but we are gratified that the judge overruled all other objections related to the plan,” said Michael Lundin, president and CEO of the company.
“Management continues to believe that our proposed plan of reorganization provides the best outcome for all stakeholders and would enable Oglebay Norton to emerge as a strong company with a new capital structure.”
The company and its wholly owned subsidiaries filed voluntary petitions under chapter 11 on Feb. 23, 2004. A requisite majority of the voting creditors supported the company’s plan of reorganization.
Oglebay Norton Co. provides essential minerals and aggregates to a broad range of markets, from building materials and environmental remediation to the energy and metallurgical industries.
Was this article valuable?
Here are more articles you may enjoy.