Alpart's bauxite plant in Nain, St. Elizabeth - File KAISER ALUMINUM'S interests in Alpart will go up for auction on April 20, Kaiser has stated.
Kaiser owns a 65 per cent share in Alpart (Alumina Partners of Jamaica), the alumina refinery and bauxite mining venture based at Nain, St. Elizabeth. Hydro Aluminium owns the rest of the Alpart shares.
The U.S. Bankruptcy Court for the District of Delaware last week ordered that the auction be conducted to determine the winning bidder. A leading producer of fabricated aluminum products, alumina, and primary aluminum, Kaiser is attempting to reorganise its operations and emerge from Chapter 11 bankruptcy protection.
The court terminated the Houston based multi-national's agreement to sell its interests to Glencore AG for approximately $165 million. Russian Aluminium (RusAl), the world's second largest aluminum producer, two weeks ago announced a renewed bid of US$237 million to purchase Kaiser's stake in Alpart.
Wednesday Business was informed that the Official Committee of Unsecured Creditors of Kaiser, which is supporting RusAL's bid, had filed a motion, asking the court to reject Glencore's offer. It had asked for a new bidding procedure that would see Kaiser and RusAL entering into a purchase agreement allowing prospective bidders to register alternative bids not less than RusAL's offer.
The court-ordered auction will be conducted on April 20, with the minimum bid set at US$215 million. Kaiser expects the court to rule on the winning bid at its regularly scheduled monthly hearing on April 26. The court action came in a monthly hearing on Kaiser matters and was in response to objections that had been filed by various parties, Kaiser stated.
PARTNERSHIP ARRANGEMENT
Under Alpart's existing partnership arrangement, Hydro Aluminium a.s., 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.
Aluminium industry sources said Chinese state-controlled Minmetals had also been unsuccessful in its bid to buy Kaiser's stake in Alpart. However, Minmetals had held talks with Hydro Aluminium and further negotiations were pending while Minmetals awaited a price offer from the Norwegian company.
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, Kaiser stated.
