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Sale of Ormet approved

June 4, 2013
Times Leader

Hannibal, Ohio On Monday, the United States Bankruptcy Court for the District of Delaware approved the sale of substantially all of the assets of Ormet Corporation, a leading producer of primary aluminum, and certain of its affiliates to Smelter Acquisition, LLC, a portfolio company owned by private investment funds managed by Wayzata Investment Partners LLC ("Wayzata"). Ormet Corporation and certain of its affiliates filed for bankruptcy protection in the United States Bankruptcy Court for the District of Delaware in late February to effectuate a financial restructuring of the Company. In connection with its restructuring, the Company received aggregate commitments of $90 million of DIP Financing, consisting of $30 million in Term DIP financing from Wayzata and a $60 million DIP facility from Wells Fargo, which replaced its $60 million pre-petition revolver with Ormet. The DIP financings provided the Company with sufficient liquidity to meet ongoing obligations and ensure the uninterrupted continuation of operations during the restructuring.

After giving effect to the transaction with Smelter Acquisition, the business will shed substantially all of its legacy liabilities and emerge with a much stronger balance sheet and sole equity sponsor in Wayzata. The Company does not anticipate that the acquisition will impact Ormet's ordinary course operations.

"Ormet made a major step forward today in finalizing our purchase agreement with Smelter Acquisition, LLC. The remaining gating issue for Ormet to exit from bankruptcy is approval of suitable relief to the current power arrangement authorized by the Public Utilities Commission of Ohio (PUCO). Ormet will be submitting a proposal to the PUCO shortly. I want to thank the Governor, the State of Ohio, JobsOhio, our Legislators, our employees, the USW and our community for the support that they have given us to reach this point." said Mike Tanchuk President and CEO.

The Asset Purchase Agreement is subject to typical closing conditions, as well as satisfactory relief from the PUCO relating to the Company's power arrangements.

A copy of the Sale Order is available on the Company's website at www.ormet.com. Information about the Chapter 11 case, including access to court filings, can be obtained at www.kccllc.net/ormet or through a link to this service on the Company's website.

 
 

 

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