Aluminum Smelter's $90M DIP Slammed By PBGC, Creditors

Law360, Wilmington (March 15, 2013, 6:28 PM EDT) -- Creditors, including the Pension Benefit Guaranty Corp., cried foul on Friday over Ormet Corp.'s $90 million bankruptcy financing package, saying it contains “unreasonable and overreaching” terms benefiting lenders led by the private equity firm planning to scoop up the aluminum smelter’s assets.

In an objection filed in Delaware bankruptcy court, Ormet’s unsecured creditors committee balked at the company’s bid to grant liens on avoidance actions to the debtor-in-possession lenders — suitor Wayzata Investment Partners LLC  and Wells Fargo Capital Finance LLC — along with provisions that...
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