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24.09.2004 Business & Finance

Kaiser files motions on refinery sales

By American City Business Journals
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Houston-based Kaiser Aluminum announced Thursday that it has filed separate motions with the U.S. Bankruptcy Court concerning the potential sale of its interests in an alumina refinery in Australia and an aluminum smelter in Ghana.

The court has agreed to the company's request to shorten the response time, setting the response date for Sept. 24 at 5:00 p.m. The court will rule on the motions on Sept. 27.

The sale involves the Queensland Alumina Ltd. refinery in Australia and the Volta Aluminum Company Ltd. refinery in Ghana.

Kaiser's motion on Valco calls for the sale of the company's interests in Valco to the Government of Ghana.

Kaiser, a producer of fabricated aluminum products, alumina and primary aluminum, is working to emerge from Chapter 11 bankruptcy.

Kaiser would sell its interests in the Queensland refinery to Comalco Aluminium Limited, one of the other current owners of QAL, for $308 million in cash plus purchase of Kaiser's alumina and bauxite inventories, and the assumption of Kaiser's $60 million of QAL debt.

Separately, Kaiser has entered into an agreement with Glencore AG whereby Glencore has agreed to submit an auction bid for the QAL interests, including a base price of $400 million in cash plus the other payments and adjustments.

The submission of Glencore's bid ensures than an auction will take place.