Aluminum producer Ormet Corp. (OTCMKTS: ORMTQ) asked to sever ties with Evercore Group LLC, its financial adviser and investment banker, after a planned sale fell through.
“These bankruptcy proceedings have not progressed in the manner envisioned” when the case began in February, Ormet said in a Jan. 21 court filing.
Evercore had been hired, with court approval, for a $100,000 monthly fee plus success fees depending on the outcome of sales or a reorganization.
Wayzata Investment Partners LLC, a part owner of Ormet, was to acquire the business largely in exchange for debt. The sale fell apart and the company’s facilities were shut down when Ohio utility regulators in October refused to grant reductions in electricity prices.
Ormet has since completed the sale of its Burnside, Louisiana, alumina plant to Almatis Inc. for $39.4 million. The company is still looking for buyer to take the facility in Hannibal, Ohio, which has a capacity of 270,000 tons of primary aluminum annually.
Evercore didn’t participate in the sale of the Burnside plant, and there will be no success fees from the sale of either facility.
Termination of Evercore’s employment comes up for approval at a hearing on Feb. 20.
Hannibal, Ohio-based Ormet emerged from a prior bankruptcy reorganization in April 2005. In the latest case, Ormet listed assets of $406.8 million and liabilities totaling $416 million. Secured debt of about $180 million includes $139.5 million on a secured term loan and $39.3 million on a revolving credit.
Bill Rochelle is a reporter for Bloomberg News.