CHICAGO Bankrupt Ormet Corp. is seeking another extension of its deadline to file a Chapter 11 reorganization plan, largely because of an ongoing power dispute.
The Hannibal, Ohio-based aluminum producer wants until Feb. 20, 2014, to file a reorganization plan and until April 22, 2014, to gain creditors acceptance of the proposal, according to documents filed Sept. 26 in U.S. Bankruptcy Court in Delaware.
If the deadline isnt pushed back, the reorganization plan will be due Oct. 23. Ormet has already been granted one extension (amm.com, May 28).
Ormet reiterated in the filing that it has found a buyer in Smelter Acquisition LLC (amm.com, June 4), but the terms of the deal require the company to secure a better power arrangement before the transaction can be closed. The company is working with the Public Utilities Commission of Ohio (PUCO) to address the issue and anticipates a "final decision ... in the coming weeks," the court documents show.
The company has already slashed production after PUCO denied its request for an emergency decision in its rate dispute with Columbus, Ohio-based utility American Electric Power Co. Inc. (amm.com, Aug. 1).
Ormet, which cited high legacy and power costs and low aluminum prices in its bankruptcy protection filing (amm.com, Feb. 26), has said it could be forced to liquidate if its sale to Smelter Acquisition isnt approved (amm.com, Aug. 19).