For the second time in 10 years, Ormet Corp. has filed Chapter 11 bankruptcy.

The chief executive officer for the corporation said this filing is different from the one in 2004.

The current owners say they hope to calm community fears because they're handling this situation differently by working with all stakeholders, including the union.

Ormet officials referred to an attempt by the former owners to implement a contract with huge cuts in wages and benefits in 2004, pushing the steelworkers to go on strike for 20 months.

"We can't solve this problem on the back of the employees, so what we're trying to do is reduce our liability cost related to the pension while we maintain benefits for our retirees," said Mike Tanchuk, Ormet president and CEO. "At the same time, we're working on reducing our energy cost. The difference is, back in 2004, these liabilities -- these long-term liabilities with pension and health care costs for retirees -- were not addressed. They continued on with the company and became an unbearable burden with Ormet financially to continue to pay that cost."

Tanchuk said Ormet has a great partner in the process: Wayzata Investment Partners.

"They're very much committed like we are to continue employment, continue to keep the plant operating and make this a success," he said.

More than 1,200 steelworkers are also hoping for that, along with their families and local residents. They're asking questions that will remain unanswered until the situation plays out in U.S. Bankruptcy Court in Delaware.

If everything goes as proposed in the bankruptcy court, Ormet would be bought by Smelter Acquisition, which is managed by Wayzata.

Officials said all operations are expected to continue without interruption during the entire Chapter 11 process.

David McCall, director of United Steelworkers District 1, said in a news release, "It is expected that Ormet will make the typical arrangements to continue paying wages and benefits to the workforce and to pay suppliers and vendors. The USW's attorneys will enter appearances in the bankruptcy case and will begin to monitor the case. Our priority must be to remain at work and to perform our job duties as safely and effectively as always."

McCall said the union also expects this bankruptcy to be far different than the previous one.

The union will schedule informational meetings to discuss the issues, and changes will be subject to ratification by the members.

Stay with NEWS9, WTOV9.com and WTOV9 Mobile for continuing coverage.