NEW YORK Niagara Worldwide LLC has secured the right to purchase the assets of bankrupt Ormet Corp. for $25.25 million following a private auction.
Niagara president Eric J. Spirtas declined to detail his companys plans for the idled aluminum smelter in Hannibal, Ohio, specifically whether the plant would reopen.
"There is a lot of opportunity and interest but it takes some time to figure out what is speculation and what is desirable," Spirtas told AMM. "The desire would be to create jobs, and our goal, our mission, our fiber is to create jobs. We will be interested in any possible uses and will work to do the right thing as we try to engage in actions that will create jobs and services that support the community and local industry."
Niagara, Wis.-based Niagara Worldwide acquires, manages, markets and sells for final disposition idle industrial property and assets both domestically and internationally.
Spirtas said that Ormets assets are a suitable addition to Niagaras portfolio. "Our network put us in the middle of terminated or dysfunctional plants and service plants. This type of project is right in our wheelhouse," he said. "It has a significant amount of assets that should not be unnecessarily disposed of. You have to study it, find partners and put together a plan."
According to documents filed in U.S. Bankruptcy Court in Delaware, Hannibal-based Ormet had selected CCP ORMT Acquisition LLC as the stalking-horse bidder for its assets with an offer of $15.25 million (amm.com, June 11).
The June 26 auction was overseen by Calibre Group LLC at the offices of Dinsmore & Shohl LLP in Cincinnati. The sale includes a breakup fee of $450,000, according to court documents filed June 27.
Ormet had sought a buyer that would resume output at the plant (amm.com, Feb. 18). The company shut the Hannibal smelter and said it couldnt emerge from bankruptcy protection after failing to secure a more favorable power rate from Ohio regulators (amm.com, Oct. 4).