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
How Expert Witness AI Use Ends Up in Discovery
“Show how 3M is 0% at fault.” The absurd tale of how a 350-page ChatGPT history for 3M’s expert witness was produced during a deposition is more likely than you think. It’s an inevitable trend, and an unsettled question for federal courts as experts make generative AI part of their workflow. Key Takeaways Expert Witness […]
Author: Chris Seelinger
The Screenshot Problem: Why Nothing Is Really Private Anymore
Screenshots have changed the risks of electronic communications. The screenshot problem is that messages intended for one person or a small group can be copied, forwarded, preserved, and ultimately presented to opposing counsel, regulators, journalists, customers, or a jury. Businesses should recognize that a truly private digital conversation is increasingly unreliable and ensure their policies, […]
Author: Sean M. Pena
BESS Project Agreements: Allocating Risk Among Developers, EPC Contractors, and Equipment Suppliers
Developers, engineering, procurement, and construction (EPC) contractors, and equipment suppliers each play a critical role in completing a BESS project. However, when equipment costs rise, deliveries are delayed, or regulations change, determining who bears the financial consequences can become contentious. Well-drafted project agreements are essential to sound risk allocation. Key Takeaways This article is Part […]
Author: Nicholas Wall
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Author: Michael Mietlicki
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
Author: Sean M. Pena
BESS Interconnection: Managing Grid, Cost, and Schedule Risk
For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Author: Nicholas Wall
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.