Bankrupt Ormet Corp. is seeking another extension of its
deadline to file a Chapter 11 reorganization plan, largely
because of an ongoing power dispute.
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
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
amm.com, Aug. 19).