On February 25, 2013 (the "Petition Date"), Ormet Corporation and various related entities filed chapter 11 petitions for bankruptcy in the United States Bankruptcy Court for the District of Delaware. As stated in the company's Declaration in Support of First-Day Motions and Applications (the "Decl.") at *4, Ormet began in 1956 as an aluminum manufacturer at a facility along the Ohio River in Hannibal, Ohio. By 2004, the company had grown to eight facilities in six states with operations that included aluminum production, rolling, recycling and coating. Id.
Low prices for aluminum and high energy costs forced the company to file for bankruptcy protection in Ohio in January of 2004. The Bankruptcy Court for the Southern District of Ohio confirmed Ormet's plan of reorganization in December of 2004. Decl. at *5. As the company enters bankruptcy a second time, this time in Delaware, Ormet operates an aluminum smelter facility in Hannibal Ohio (256 acres) and a refinery in Burnside, Louisiana (1,100 acres). Decl. at *7. In the weeks leading up to bankruptcy, Ormet employed over 1,100 individuals, 977 of which are represented by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union. Decl. at *8.
Reasons for Filing Bankruptcy