The Hannibal, Ohio-based company, in a filing with the US Bankruptcy Court for the District of Delaware, said it wants until 20th February 2014, to submit a plan and until 22nd April 2014, to seek creditors’ approval of the plan.
Ormet filed bankruptcy on 25th February 2013 and, earlier this year, received an initial extension to file a plan by 23rd October 2013.
The company said it has made "great strides" since the February Chapter 11 filing. The court on 4th June approved a proposal by Smelter Acquisition LLC, owned by Minnesota’s Wayzata Investment Partners, to purchase virtually all of Ormet’s assets for $282 million. But the deal has been held up over electricity power cost uncertainty involving Ormet's flagship operation, the 260,000 mt/year Hannibal smelter in south-eastern Ohio.
Ormet's efforts to secure lower power costs for Hannibal have been affected. "As a result, the debtors have not yet analysed in significant detail all issues related to a potential plan filing," Ormet said. "Additionally, the ability to formulate any plan requires the debtors (and other parties in interest) to know the outcome of the sale, which has not yet occurred. " Extending the exclusive period for Ormet to file a reorganisation plan by several months "will provide the debtors with the time necessary to further investigate additional possible sources of recovery," the company said. "The protection of the exclusive period will allow the debtors to focus on closing the sale, maximising recoveries for creditors and negotiating a proper conclusion of these cases, without the distraction of any competing plans."