Bankruptcy Judge Clears Sale of Ormet Plant to Niagra Worldwide
It's a story that's had plot twists, rising action and now may finally be reaching a resolution. Judge Mary Walrath cleared the sale of Ormet to Niagra Worldwide for $25 Million dollars.
The factory shut down in October after the Public Utilities Commission of Ohio denied its request for a reduction of its power rates. Hundreds of employees were then laid off and the plant was operating on a skeleton crew.
Ormet then laid off the remaining 42 employees in May and the plant completely closed down at the beginning of July.
The site was auctioned off by a Cincinnati law firm at the end of June. Niagara Worldwide placed the highest bid at $25 million dollars on June 27th.
The President of Niagara, Eric Spirtas, seems optimistic about the sale, saying, "We're excited, we think that the assets, the property and timing are good."
Judge Mary Walrath furthered the sale after rejecting arguments by the United Steelworkers union that the plant's new owner should honor a portion of Ormet's pension obligations. The union can appeal the ruling.
It's still unclear whether this is just the next chapter in the Ormet saga or if it closes the book on the steel manufacturer for good.