Kaiser picks Rual Trade as stalking horse for Alpart

New York, April 7 - Kaiser Aluminum said it has signed a stalking horse agreement with Rual Trade Ltd. to sell its interest in Alpart for $215 million.

An auction will be held on April 20, with bids due by April 15. Kaiser expects the U.S. Bankruptcy Court for the District of Delaware to confirm the winner on April 26.

Rual Trade is a member of Rusal Group.

Alpart is a partnership that owns bauxite mining operations and an alumina refinery in Jamaica.

Under the partnership agreement, Hydro Aluminium AS, which owns the remaining 35% of Alpart, has the right for 30 days after the court approves the sale to buy Kaiser's interest at the price approved by the court.

In March, Kaiser was ordered by the bankruptcy court to hold an auction for its Alpart interests after Russian Aluminum or Rusal objected. Instead of running a formal auction, the Houston aluminum company had previously invited bids and assured the winner that the company would ask the court to approve the sale without an auction. Alpart had planned to sell its stake to Glencore AG for $165 million.

Kaiser filed for Chapter 11 on Feb. 12, 2002.

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