Ormet Corporation filed a motion in the US Bankruptcy Court for the sale of substantially all its assets on June 9, 2014. The debtor seeks the Court's approval for the sale of substantially all its assets to the stalking horse bidder, for a purchase price of $15.25 million in cash pursuant to the stalking horse purchase agreement. The good faith deposit will be equal to 10% of the purchase price or $1.53 million.

To qualify as a qualified bidder, interested parties should submit their bids by June 24, 2014. The initial minimum overbid should be in the amount of at least $0.25 million. The debtor has scheduled an auction on June 26, 2014.

At the auction, the subsequent bids would be in increments of $0.25 million. The stalking horse bidder would be entitled to a break-up fee of $0.05 million in case of termination of the asset purchase agreement. The sale hearing is scheduled for June 30, 2014.

The consideration paid by the stalking horse bidder and use of proceeds includes cash and the assumption of certain assumed liabilities to be payable as and when payments come due. The cash component will be remitted to the DIP term loan agent to pay down the debtor's obligations under the debtor's post-petition term loan agreement.