United States Trustee Roberta DeAngelis filed a motion on Wednesday to convert Ormet's bankruptcy filing from a Chapter 11 bankruptcy to a Chapter 7 liquidation.
A hearing on the bankruptcy is scheduled on November 7 before Judge Mary Walrath of the U.S. bankruptcy court in Wilmington, Delaware.
Meanwhile, American Electric Power told the court they need a payment of at least $1 .4 million or power to the Hannibal plant could be shut off as early as Friday.
Last Friday, the Ohio Environmental Protection Agency filed an objection against the shutdown of the Hannibal plant because of the problems it could pose to the environment. In the past, the soil and ground around the Ormet site have been contaminated with cyanide and fluoride, but Ormet has since remedied the contamination in the groundwater. However, in 2010, Ormet and the Ohio EPA reached a $12,000 settlement due to Ormet polluting the Ohio River between 2004 and 2009.
The objection filed by the Ohio EPA in United States Bankruptcy Court states the following: "Debtors must comply with applicable environmental laws just like any other owner of environmentally contaminated property....cleanup obligations under environmental laws are not dischargeable in bankruptcy."