CCP ORMT Acquisition LLC made a stalking horse bid to acquire aluminum smelting facility in Hannibal from Ormet Corporation (OTCPK:ORMT.Q) (“debtor”) for $15.2 million on June 9, 2014. Under the asset purchase agreement, Ormet seeks the Court's approval for the sale of substantially all its assets to CCP ORMT for a purchase price of $15.25 million in cash and a good faith deposit equal to 10% of the purchase price or $1.53 million. To qualify as a qualified bidder, interested parties would submit their bids by June 24, 2014 wherein the initial minimum overbid should be in the amount of at least $0.25 million. The debtor has scheduled an auction on June 26, 2014. At the auction, the subsequent bids would be in increments of $0.25 million. CCP ORMT Acquisition would be entitled to a break-up fee of $0.05 million in case of termination of the asset purchase agreement. The sale hearing is scheduled for June 30, 2014. The consideration paid by CCP ORMT and use of proceeds includes cash and the assumption of certain assumed liabilities to be payable as and when payments come due.

As announced on June 26, 2014, NIAGARA Worldwide LLC entered into an asset purchase agreement to acquire aluminum smelting facility in Hannibal and real property interests for $25.3 million. Also, CCP ORMT is kept as back up bidder by Ormet. CCP ORMT Acquisition LLC made a stalking horse bid to acquire aluminum smelting facility in Hannibal from Ormet Corporation (OTCPK:ORMT.Q), Ormet Railroad Corporation, Specialty Blanks Holding Corporation, Ormet Primary Aluminum Corporation and Ormet Aluminum Mill Products Corporation for $24.6 million. The Breakup fee that the sellers will pay to CCP ORMT Acquisition in case of termination is $0.45 million.

Kim Martin Lewis of Dinsmore & Shohl LLP and Robert J. Dehney of Morris, Nichols, Arsht & Tunnell LLP acted as legal advisors to Ormet Corporation. Michael M. Eidelman of Vedder Price PC acted as legal advisor to CCP ORMT. Toby Kreidler and Siegel of Calibre Group LLC acted as financial advisors to Ormet.