Ormet eyes dismissal of Chapter 11 case, unable to fund plan process

By Kali Hays

New York, Oct. 1 – Ormet Corp. is seeking a dismissal of its Chapter 11 bankruptcy case, according to a Sept. 30 motion with the U.S. Bankruptcy Court for the District of Delaware.

The company said it has worked with its secured lenders over the past year and pursued a series of successful asset sales after an initial, court-approved sale of its assets was unable to close with a ruling from the Public Utility Commission of Ohio related to terms on the cost of electricity in the state.

“Accordingly, upon consummation of the final sale, the debtors will have no remaining assets and all proceeds will have been distributed,” the motion stated.

Ormet said it “fully maximized” the value of its assets through the sales, but did not earn “sufficient proceeds to fully repay prepetition secured indebtedness, nor to pay outstanding administrative claims” leaving the company unable to fund a confirmable Chapter 11 plan.

“As the debtors have curtailed all operations and sold all assets, it is simply impossible for the debtors to rehabilitate their business,” the motion stated.

A hearing is scheduled for Oct. 23.

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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