Kaiser Aluminum extends DIP to February 2005

By Carlise Newman

Chicago, Aug. 14 - Kaiser Aluminum and its debtor-in-possession credit facility lenders completed two amendments, the second of which extends the maturity of the DIP to Feb., 2005.

The other provisions of the most recent amendment (the sixth amendment to the DIP) includes an increase in the eligible borrowing base by restoring the amortizing fixed assets subcomponent back to the original $100 million amount as of August, the incorporation of the May limited waiver and a modification of financial covenants for June 30 onwards and a reduction of the commitment amount of the DIP facility to $285 million, according to a filing with the Securities and Exchange Commission.

The other amendment (the fifth amendment to the DIP) will permit the company to take actions necessary to facilitate access by the company's 20% owned affiliate Queensland Alumina Ltd. to amounts available under its existing financing arrangements, reducing the funding requirements for Queensland Alumina for Kaiser and the other owners.

Kaiser's share of additional financings at QAL is $43 million.

The fifth amendment to the DIP was approved by the court in June. The sixth amendment was approved on an interim basis by the court on Aug.13. With no objections, the interim order will become final on Aug. 19. The motion to approve the sixth amendment was agreed with the creditors' committees and the asbestos futures representative and Kaiser does not expect any objections.

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