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Ormet emerges from bankruptcy
By Ellen Chang
Houston, April 1 - Ormet Corp. emerged from Chapter 11 Friday, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Ohio.
All conditions to its reorganization plan had been satisfied, the company said. The plan was confirmed by the court on Dec. 15.
Under the plan, Ormet will issue 1 million new common shares and new term notes. The noteholders, term noteholders and holders of general unsecured claims will get all of the reorganized company's stock.
MatlinPatterson Global Advisors LLC will own about 31% of the reorganized company's stock. MatlinPatterson has also agreed to buy $30 million of new 11% term notes.
Holders of Wheeling, W.Va.-based Ormet Corp.'s old 11% senior notes due 2008, $75 million floating-rate term loans and general unsecured claims will get an estimated recovery of 25.3%, according to the company's disclosure statement.
Ormet filed for bankruptcy on Jan. 30, 2004, citing low prices for aluminum and high production costs. Its Chapter 11 case number is 04-51255.
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