Ormet to Sell to Only Bidder Wayzata for $221 Million
Ormet Corp. (ORMTQ), the operator of an Ohio aluminum smelter, canceled a bankruptcy auction and will sell virtually all its assets to an affiliate of lender Wayzata Investment Partners LLC for about $221 million.
The company didn’t receive any qualified competing bids by yesterday’s deadline to challenge Wayzata’s offer, according to court documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware.
Ormet will seek court approval at a May 15 hearing of the deal giving Wayzata the assets in exchange for forgiving about $221 million in debt it’s owed.
The aluminum producer, based in Hannibal, Ohio, listed assets of $407 million and debt of $416 million, according to court documents.
Ormet has the ability to produce 270,000 tons of aluminum a year when operating at full capacity, court papers show. Its alumina refinery in Burnside, Louisiana, one of only four in the U.S., is capable of producing 540,000 tons of smelter-grade alumina a year at full capacity.
The case is In re Ormet Corp., 13-10334, U.S. Bankruptcy Court, District of Delaware (Wilmington).
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