Kaiser Aluminum To Hold Auction For Its Interests In Alpart
HOUSTON, Texas, March 23, 2004 -- Kaiser Aluminum said that the U.S. Bankruptcy Court for the District of Delaware ordered that an auction be conducted to determine the winning bidder for Kaiser's interests in and related to Alpart, a partnership that owns bauxite mining operations and an alumina refinery in Jamaica. The Court terminated without prejudice Kaiser's agreement to sell these interests, including 65% of the Alpart partnership, to Glencore AG for approximately $165 million.
The Court action came yesterday in a regularly scheduled monthly hearing on Kaiser matters and was in response to objections that had been filed by various parties.
The Court-ordered auction will be conducted on April 20, with the minimum bid set at $215 million. Kaiser expects the Court to rule on the winning bid at the regularly scheduled monthly hearing on April 26.
Under Alpart's existing partnership arrangement, Hydro Aluminium a.s., which currently owns the remaining 35% of Alpart, retains the right - for 30 days following Kaiser's receipt of Court approval of any sale transaction - to elect to purchase Kaiser's interests at the price specified in any agreement approved by the Court.
As previously disclosed, any sale of Kaiser's interest in Alpart is subject to a number of approvals, including approvals by the Court, Kaiser's board of directors, and the lenders under Kaiser's Post-Petition Credit Agreement, as more fully discussed in the company's most recent Quarterly Report on Form 10-Q.
Kaiser Aluminum (OTCBB: KLUCQ) is a leading producer of fabricated aluminum products, alumina, and primary aluminum.
Company press releases may contain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The company cautions that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may vary materially from those expressed or implied in the forward-looking statements as a result of various factors. Actual events could differ materially from those reflected in the forward-looking statements contained in this press release as a result of various factors, including but not limited to those relating to approval of the sale by the United States Bankruptcy Court for the District of Delaware and by the lenders under Kaiser's Post-Petition Credit Agreement, as well as the satisfaction of the other conditions contained in the definitive documentation providing for the sale. As a result, no assurance can be given as to whether or when the sale will occur.