NEW YORK, Reuters:
KAISER ALUMINUM Corp.'s debtors have filed a motion in United States bankruptcy court for the District of Delaware to reopen the auction process for the Alpart alumina plant in Jamaica, according to court documents.
The emergency motion filed last Thursday asks the court to set aside its April 26 sale order for Alpart and to reopen the auction at a June 1 hearing already scheduled on the case or by June 4 at the latest. The motion said the creditors believe the highest price for the assets has not yet been achieved.
As part of its plan to emerge from bankruptcy, Kaiser has been selling off some assets, including the 1.5 million tonne-per year Alpart alumina mine and refinery, a plant that supplies the key raw material for aluminium production.
Houston-based Kaiser filed for Chapter 11 bankruptcy protection in February 2002. A Kaiser spokesman said the company offered no further comment on the latest legal development beyond the court papers.
65 PER CENT STAKE
On Tuesday, Norway's Norsk Hydro, the world's third biggest integrated aluminium group, blocked Russian aluminum giant RUSAL's plan to take control of the Jamaican alumina facility, saying it would exercise its right to the 65 per cent stake owned by Kaiser and resell it to Swiss metals trader Glencore AG.
The debtors said on Thursday that they were asking for consideration on an emergency basis because they must enter a purchase agreement with Norsk Hydro by June 9, as part of the terms of Hydro's right of first refusal to buy the remaining stake in Alpart. On April 26, the bankruptcy court authorised Kaiser's creditors to enter an agreement to sell their interests in Alumina Partners of Jamaica, or Alpart, to Rusal through RUAL Trade Limited.
Rusal had sweetened its bid for Alpart on Tuesday by US$10 million to US$316.2 million.
Later that day, Norsk Hydro said it would pay US$295 million plus an additional US$11.2 million after contract adjustments.
PARTNERSHIP
The Norwegian energy and metals group owns 35 per cent of Alpart, and said it was entitled by a partnership with co-owner Kaiser Aluminium to intervene in any change of ownership by matching an outsider's bid.
Rusal then filed a motion with a U.S. court to halt the sale to Norsk Hydro pending a challenge of the original right of first refusal.
The debtors motion filed on Thursday asked the court to set aside the April 26 sale order to RUAL and to open the auction process again for Alpart assets.
