Ormet looks for approval of $1.5 million additional DIP financing

By Kali Hays

New York, Aug. 8 – Ormet Corp. asked for court authorization on an 11th amendment to its debtor-in-possession credit agreement allowing for $1.5 million of additional funding, according to a Thursday motion for the U.S. Bankruptcy Court for the District of Delaware.

If approved, the maturity date of the loan will be extended through Oct. 31.

With the additional $1.5 million, the total amount of funding under the DIP loan will be increased to $56.5 million.

As previously reported, Ormet received interim approval of its wind-down plan that allows the company to make necessary payments in compliance with a budget that runs through Aug. 28.

According to the motion, the company is “in need of additional funding to complete an orderly wind-down.”

A hearing to approve the amendment and the wind-down plan is scheduled for Aug. 28.

Ormet, a Hannibal, Ohio-based producer of aluminum, filed for bankruptcy on Feb. 26, 2013. The Chapter 11 case number is 13-10334.

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