Sale or liquidation said Ormet’s options
May 20, 2013 | 01:45 PM
| Michael Cowden
CHICAGO Bankrupt aluminum producer Ormet Corp. says it could be forced to liquidate if its sale to an entity owned by private investment firm Wayzata (Minn.) Investment Partners LLC is not approved.
Since Ormet filed for Chapter 11 bankruptcy protection Feb. 25, energy costs have risen and market conditions have worsened, an attorney representing the company said in court documents filed May 17 in U.S. Bankruptcy Court in Delaware.
That means the Hannibal, Ohio-based company could face significant liquidity issues as early as mid- or late July 2013, they said.
Ormet lost more than $41.8 million from January to April 2013, according to court documents filed in Delaware bankruptcy court May 20. The aluminum producer last generated positive cash flow from operating activities in the first month of the year. Since then, the company has seen losses balloon from approximately $12.6 million in the month of February to nearly $17.4 million in April, according to the May 20 court documents. ....
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