Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
U.S. Aluminum Producer Files For Chapter 11 Bankruptcy Protection
Author: Joel R. Glucksman
Date: March 12, 2013
Key Contacts
Back
U.S. aluminum producer Ormet Corporation is seeking protection under Chapter 11 bankruptcy law.
The company filed for protection in a U.S. Bankruptcy Court in Delaware. In court documents, it cited falling aluminum prices and growing operational costs as the reason for its financial distress. The company said it agreed to sell itself to investment firm Wayzata Investment Partners, and noted that the bankruptcy will allow it to restructure its debt and continue operations. Ormet has received roughly $90 million of debtor-in-possession financing. Nearly $60 million of the DIP financing will be provided by Wells Fargo, while the remaining $30 million will come from Wayzata.
Mike Tanchuk, CEO and president of Ormet Corporation, said the decision to sell Ormet to private investors will enable it to maintain its relationships with employees, suppliers, and clients while regaining its position of strength. He also noted that the financing will allow the company to pay its vendors in the ordinary course of business.
“The Chapter 11 filing will allow Ormet to accomplish two important goals,” Tanchuk explained. “First, to sell the company in a controlled process that is designed to ensure that the highest and best offer is received. Second, to restructure the debt and legacy costs while operations continue. We will come out of this process stronger and better positioned for the future.”
Court documents show that Ormet listed $407 million in assets and $417 in liabilities. In its bankruptcy filing, the company requested that it be allowed to continue paying its employees’ salaries, wages, and benefits. The company said that it will seek Bankruptcy Court approval of Wayzata’s bid to purchase Ormet’s assets. This process will provide that third-parties may seek to outbid Wayzata for the company.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business, Bankruptcy Litigation
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
SPACs Are Back, What You Need to Know
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Short Form Merger: Streamlining the Process for Businesses
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
Tariff Response Options for Small Businesses Facing Financial Distress
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
President Trump's Termination of Member Gwynne Wilcox
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.