In a letter to United Steelworker members today, the organization released the following statement:
"We expect that this bankruptcy will be far different than the previous bankruptcy that
occurred in 2004. In that bankruptcy the former owners attempted to implement a
contract with huge wage and benefit reductions and it resulted in a 20 month long
strike. The current owners have taken a different approach. The company has entered
an agreement to sell the business to a buyer which has proposed to buy the business."
Stay with wtrf.com for more updates.
The Ormet Corporation in Hannibal, Ohio has filed for voluntary Chapter 11 bankruptcy.
According to Ormet's website, the company filed on Monday in United States Bankruptcy Court.
In September 2012, layoffs were announced at the Hannibal Primary Aluminum Reduction Plant, and just a month before that, Ormet had announced the closure of a second pot line, leaving just four in operation.
In August 2012, the electric costs for Ormet were raised over $20 million due to a ruling in the AEP Security Plan by the Public Utilities Commission.
CEO Mike Tanchuk said the voluntary Chapter 11 filing is a positive and necessary step for Ormet and is in the best interest of the company, the employees, suppliers, customers and other key stakeholders.
Ormet has sought approval to continue the payment of employee wages, salaries and benefits, and anticipates the court will approve.
7News is looking further into this story and will have developments throughout the day and on WTRF.com.