Oglebay Norton misses bond interest payment

Pit & Quarry, March, 2004

Oglebay Norton Co. says that it has decided not to make the interest payment that was due February 2, on its 10 percent 2/1/09 Senior Subordinated Notes.

The company says management and its financial and legal advisors are in discussions with the company's bank group, its senior secured note holders and its subordinated note holders.

"We continue to have sufficient liquidity to operate our business," says Oglebay Norton President and CEO Michael D. Lundin. "This situation does not affect our ability to pay our employees or vendors or serve our customers."

As earlier reported by the company in its filings with the Securities and Exchange Commission, its ability to complete a financial restructuring is uncertain and subject to substantial risk. While the company is in the process of restructuring, investments in its securities will be highly speculative. The company may be unable to accomplish its goals outside the protection of bankruptcy laws. In that event, shares of the company's common stock will likely have little or no value.