Ormet eyes $5 million of additional DIP financing to fund wind-down

By Caroline Salls

Pittsburgh, Dec. 16 - Ormet Corp. requested court approval to amend its debtor-in-possession term loan credit agreement to obtain up to $5 million of additional financing, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said it believes that the value of its assets is being maximized through a Dec. 12 Burnside refinery sale closing and a wind-down and sale of the estates' remaining assets.

However, without an agreement by the term DIP lenders to provide additional liquidity, Ormet said it would have no means of providing the necessary cash to complete the sale and wind-down process.

This is the sixth amendment to the company's DIP credit agreement.

Ormet, a Hannibal, Ohio-based producer of aluminum, filed for bankruptcy on Feb. 26, 2013. The Chapter 11 case number is 13-10334.

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