Bankrupt Smelter Says $130M Sale Kept It From Liquidating

Law360, New York (May 17, 2013, 9:09 PM EDT) -- Bankrupt aluminum smelter Ormet Corp. said Friday that it had to sell itself to private equity firm Wayzata Investment Partners LLC for $130 million without a Chapter 11 plan in place or be forced to liquidate, rebuffing an objection to the deal from the Pension Benefit Guaranty Corp.

PBGC had argued the proposed sale without a plan is improper because it would put the independent government agency, which insures many pension plans, on the hook for $260 million in unfunded contributions, but Ormet contends bankruptcy rules...
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