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Ormet Sale Is Up For Hearing

Wayzata wants to buy aluminum maker for $221 million

May 13, 2013

HANNIBAL — Ormet Corp. employees should learn Wednesday if the company’s sale to a subsidiary of Wayzata Investment Partners for $221 million will be finalize....

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May-13-13 6:12 AM

Why didn't Ormet create a distinct holding company and dump the pension liabilities into it, sort of like some steel and auto companies did? It is called a VEBA, or Voluntary Employee Benefits Association. The company pays whatever amount into the fund on a quarterly or annual basis. The union manages the fund for the benefit of workers. The company gets to remove all health and pension liabilities from its' balance sheet. A win/win for all.

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May-13-13 6:52 AM

WHY is a good word. why does regular people of eastern Ohio have to pay Ormets electric bills? It's just plan crazy for old grandma to have higher bills to fund that old alumn. plant.

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May-13-13 7:43 AM

Realize that "Wayzata Investment" is just a Vulture Capital firm like the much maligned Bain Capital of Mitt Romney fame.

They are just in it for the money and they would NOT hesitate to slash, burn, and outsource to China IF it makes sense to cut costs and increase profit.

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May-13-13 8:13 PM

Ragnar: The VEBA will be terminated under this latest bankruptcy.

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May-13-13 8:32 PM

loghog: Living in Ohio, I don't like helping pay for someone's electric bill either, but you have to remember: 1)that they are a large consumer and they pay a very large portion (maybe the largest) of AEP's fixed cost (per PUCO regs) . 2) Those fixed costs would fall on all of AEP's other customers if Ormet would cease to purchase electricity. 3) Century Aluminum is trying to do the same in Kentucky, they purchase power from a utility much smaller than AEP-Ohio. If their smelter would close then the fixed costs would result in a rate increase for all of their remaining consumers. 4) Can't say that this would happen with AEP-Ohio's customers if Ormet were to close as I don't have any data for them. But I suspect the rates would not return to their original levels if this were to occur.

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