The biggest flameout during the period ending Feb. 24 was Oglebay Norton‘s filing for bankruptcy protection on Feb. 23.
The Cleveland-based company ships limestone, coal and iron ore on the Great Lakes to customers in the steel and construction industries. It has been in business for more than 150 years and employs 1,770 people in 13 states, but has been losing money of late and had fallen behind on loan payments. For the first three quarters of 2003, the company lost US$23.3 million, or US$4.57 per share, compared with a US$74,000 profit a year earlier. The company said it would continue shipping product to its customers while it seeks court approval for US$75 million in new credit from a syndicate led by Silver Point Finance. Oglebay was the top percentage loser on the week, tumbling 39% to US81.
Meanwhile, Salt Lake City-based junior Golden Eagle International was the top percentage gainer in the U.S., rocketing 59% to US27. Most of the gains occurred on Feb. 24 in the hours leading up to a conference call to discuss geological reports conducted on the company’s two key properties in Bolivia: the Cangalli mine in the Tipuani gold district, and the Buen Futuro property in the Ascension gold-copper trend.
AngloGold reported that it has signed a “stability agreement” with the government of Ghana in relation to its proposed merger with Ashanti Goldfields — a merger in which the government wields veto power. Ashanti hopes to hold a shareholder vote in early April so that the merger can be completed by the end of April. Ashanti dropped US75 to US$11.99 while AngloGold sank US$2.31 to US$41.98.
Be the first to comment on "Oglebay Norton files for Chapter 11"