02 OCTOBER 2013Platts
Ormet seeks more time to file Chapter 11 bankruptcy plan
Edited by : AL CIRCLE
2 min read
US aluminum producer Ormet Corp again is asking a federal bankruptcy court for more time to file a Chapter 11 reorganization plan that currently is due by October 23.
The Hannibal, Ohio-based company, in a filing Friday with the US Bankruptcy Court for the District of Delaware, said it wants until February 20, 2014, to submit a plan and until April 22, 2014, to seek creditors' approval of the plan.
Ormet filed bankruptcy on February 25 and, earlier this year, received an initial extension to file a plan by October 23.
Ormet said it has made "great strides" since the February Chapter 11 filing. The court on June 4 approved a proposal by Smelter Acquisition LLC, owned by Minnesota's Wayzata Investment Partners, to purchase virtually all of Ormet's assets for $282 million.
But the deal has been held up over electricity power cost uncertainty involving Ormet's flagship operation, the 260,000 mt/year Hannibal smelter in southeastern Ohio. Ormet's efforts to secure lower power costs for Hannibal have been affected.
"As a result, the debtors have not yet analyzed in significant detail all issues related to a potential plan filing," Ormet said. "Additionally, the ability to formulate any plan requires the debtors (and other parties in interest) to know the outcome of the sale, which has not yet occurred."
Extending the exclusive period for Ormet to file a reorganization plan by several months "will provide the debtors with the time necessary to further investigate additional possible sources of recovery," the company said. "The protection of the exclusive period will allow the debtors to focus on closing the sale, maximizing recoveries for creditors and negotiating a proper conclusion of these cases, without the distraction of any competing plans."
In addition to the smelter, Ormet also operates a 540,000 mt/year alumina refinery in Burnside, Louisiana.
On Thursday, Ohio regulators are expected to decide on Ormet's application to set Hannibal's power rate at $45.99/MWh for the rest of 2013 and whether or not to allow the company to purchase less expensive power off the wholesale market starting in January.
American Electric Power, which supplies more than 500 MW to Hannibal, is opposing the request.
The Hannibal, Ohio-based company, in a filing Friday with the US Bankruptcy Court for the District of Delaware, said it wants until February 20, 2014, to submit a plan and until April 22, 2014, to seek creditors' approval of the plan.
Ormet filed bankruptcy on February 25 and, earlier this year, received an initial extension to file a plan by October 23.
Ormet said it has made "great strides" since the February Chapter 11 filing. The court on June 4 approved a proposal by Smelter Acquisition LLC, owned by Minnesota's Wayzata Investment Partners, to purchase virtually all of Ormet's assets for $282 million.
But the deal has been held up over electricity power cost uncertainty involving Ormet's flagship operation, the 260,000 mt/year Hannibal smelter in southeastern Ohio. Ormet's efforts to secure lower power costs for Hannibal have been affected.
"As a result, the debtors have not yet analyzed in significant detail all issues related to a potential plan filing," Ormet said. "Additionally, the ability to formulate any plan requires the debtors (and other parties in interest) to know the outcome of the sale, which has not yet occurred."
Extending the exclusive period for Ormet to file a reorganization plan by several months "will provide the debtors with the time necessary to further investigate additional possible sources of recovery," the company said. "The protection of the exclusive period will allow the debtors to focus on closing the sale, maximizing recoveries for creditors and negotiating a proper conclusion of these cases, without the distraction of any competing plans."
In addition to the smelter, Ormet also operates a 540,000 mt/year alumina refinery in Burnside, Louisiana.
On Thursday, Ohio regulators are expected to decide on Ormet's application to set Hannibal's power rate at $45.99/MWh for the rest of 2013 and whether or not to allow the company to purchase less expensive power off the wholesale market starting in January.
American Electric Power, which supplies more than 500 MW to Hannibal, is opposing the request.
Previous article
Rusal signs agreement to convert western Russian smelters
Next articleSlovak aluminium producer Slovalco, power producer SE agree on electricity supply deal
Grow with
AL Circle
