Ormet cancels auction, names Smelter Acquisition the successful bidder

By Jim Witters

Wilmington, Del., May 9 - Ormet Corp. has canceled its scheduled auction and named stalking horse Smelter Acquisition LLC the successful bidder with an offer of $130 million for substantially all of Ormet's assets, according to documents filed May 9 with the U.S. Bankruptcy Court for the District of Delaware.

The company said it received no other bids before the deadline.

As previously reported, Smelter Acquisition is a portfolio company owned by private investment funds managed by Wayzata Investment Partners LLC.

Some affiliates of Smelter Acquisition are substantial holders of Ormet's common stock, collectively controlling about 47% of the equity.

Wayzata entities also are the pre-petition term loan lenders and debtor-in-possession term loan lenders.

The auction was scheduled for May 13.

A hearing to approve the sale is scheduled for 10:30 a.m. ET on May 15.

Ormet, a Hannibal, Ohio-based producer of aluminum, filed for bankruptcy on Feb. 26. The Chapter 11 case number is 13-10334.

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