CHICAGO Bankrupt aluminum company Ormet Corp. has been sold to an entity owned by private equity firm Wayzata (Minn.) Investment Partners LLC, according to court documents filed in U.S. Bankruptcy Court in Delaware.
The Hannibal, Ohio-based company had originally been scheduled to go to auction next week, but the auction was canceled because no bids besides that from stalking horse bidder Smelter Acquisition LLC, a Wayzata entity, were received and no objections to the proposed sale were made before a May 8 deadline (amm.com, March 27
), the documents said.
Ormet had also struggled to find interested buyers before it filed for bankruptcy protection, earlier documents showed (amm.com, March 1
A hearing to approve the sale is scheduled for May 15.
The exact purchase price for Ormet was not immediately clear, and attorneys representing Ormet did not immediately respond to requests for comment on May 10.
Ormet reported assets of $406.8 million and total liabilities of $416 million when it filed for Chapter 11 bankruptcy (amm.com, Feb. 26
High legacy and power costs and low aluminum prices pushed the company to seek bankruptcy protection, it said at the time.
Ormets smelter in Hannibal can produce up to 270,000 tons of primary aluminum per year when operating at full capacity, and its alumina refinery in Burnside, La., can produce 540,000 tons of smelter-grade alumina per year, according to court documents.