Ormet gets final approval for $30 million DIP financing facility

By Jim Witters

Wilmington, Del., March 22 - Ormet Corp. was granted final approval for $30 million in debtor-in-possession financing, according to documents filed March 22 in the U.S. Bankruptcy Court for the District of Delaware.

The term DIP facility is through pre-petition lender and stalking-horse bidder Wayzata Investment Partners LLC.

Interest on the term loan is 10%.

The term loan will mature on the earliest of nine months from the filing date, the plan effective date or the 20th day after entry of the confirmation order, the closing of a sale of substantially all company assets, repayment in full of the obligations or acceleration of the loan.

As previously reported, Ormet has proposed the sale of substantially all of its assets to stalking-horse bidder Smelter Acquisition, LLC, an affiliate Wayzata Investment Partners, LLC, and certain Wayzata-controlled funds.

The proposed sale involves a credit bid and the assumption of certain liabilities.

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

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