Wayzata Investment Partners LLC entered into a definitive asset purchase agreement to acquire substantially all assets from Ormet Corporation (OTCPK:ORMT) for approximately $220 million on February 25, 2013. The purchase price would consist of repayment or assumption of the debtor in progress loans, credit bidding of $130 million of Ormet term loans held by Wayzata-managed funds, delivery of $1 million of debt or buyer's convertible securities, and payment of cash for certain fees and expenses to be incurred in the administration of the bankruptcy proceedings. Wayzata would also assume Ormet's normal course liabilities, but not many of legacy liabilities. Ormet has received commitments of $90 million of debtor in progress financing, consisting of a $30 million financing from Wayzata and a $60 million from Wells Fargo, which will replace its $60 million pre-petition revolver with Ormet.

The transaction is subject to bankruptcy court approval, government approvals, third party approvals, HSR Act, which is expected in next few days. The deal is also subject to satisfactory amendments to Ormet's electric power agreement and collective bargaining agreements. The Board of Directors of Ormet has approved the transaction. As on June 4, 2013, the deal was approved by bankruptcy court.

Kim Martin Lewis and Patrick D. Burns of Dinsmore & Shohl LLP and Robert J. Dehney, Daniel B. Butz and Erin R. Fay of Morris, Nichols, Arsht & Tunnell LLP acted as the legal advisor for Ormet Corporation. Scott Alberino and Joanna Newdeck of Akin Gump Strauss Hauer & Feld LLP acted as the legal advisors for Wayzata Investment Partners LLC. Sharon Levine, S. Jason Teele and Cassandra M. Porter of Lowenstein Sandler LLP and Jonathan M. Stemerman, Rafael X. Zahralddin-Aravena and Shelley A. Kinsella of Elliott Greenleaf acted as legal advisor for creditors' committee. Lloyd A. Sprung of Evercore Partners Inc. (NYSE:EVR) acted as financial advisor for Ormet. Toby Kreidler and Ed Siegel of Calibre Group LLC acted as financial advisors to Ormet.