Bankrupt Ormet accepting bids for Ohio aluminum smelter

Bankrupt US aluminum producer Ormet is accepting bids for its idled, 260,000 mt/year Hannibal smelter in southeastern Ohio ahead of a court-sanctioned auction of the plant and related assets on Thursday, an official in the case said Monday.

Toby Kreidler, a principal in Calibre Group, said in an email that his company is accepting bids over the next couple of days, but did not say how many offers are expected. Officials involved in the proceedings have, however, said they expect at least one additional bidder to come forward this week.

Ormet would head into the auction with a stalking horse bidder, CCP ORMT Acquisition, a redeveloper that has agreed to pay $15.25 million for the assets. Ormet would pay a $450,000 breakup fee to CCP if another party ends up with the assets.

Calibre Group was authorized earlier this year by Judge Mary Walrath of the US Bankruptcy Court for the District of Delaware to find a buyer for the smelter, which has been shut since October.

The Ohio Public Utilities Commission in early October approved partial electricity rate relief sought by Ormet but not enough in Ormet's view, to keep the smelter open. Among other things, Ormet had sought permission to begin buying power from the wholesale electricity market. That request was opposed by American Electric Power, the smelter's longtime power supplier.

Ormet filed for bankruptcy reorganization on February 25, 2013. Since then, most of the company's major assets and raw materials have been sold. The smelter is the company's last remaining major asset.

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