Bankrupt Ormet Lines Up Extra $10M DIP To Fund Wind Down

Law360, Wilmington (October 31, 2013, 5:06 PM EDT) -- Aluminum smelter Ormet Corp. asked a Delaware bankruptcy judge Wednesday to approve an additional $10 million of debtor-in-possession financing designed to fund the company's wind down, which includes a $39.4 million sale of its Louisiana refinery.

Under Ormet's emergency DIP motion, private equity firm Wayzata Investment Partners LLC — a prepetition creditor whose deal to purchase the company fell apart last month — would enlarge its existing $40 million term loan by $10 million.

The funds are key to Ormet's plan to sell its Louisiana facility...
To view the full article, register now.