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Kaiser's unsecured creditors' committee objects to exclusivity extension
By Jeff Pines
Washington, Aug. 10 - The unsecured creditors' committee of Kaiser Aluminum Corp. objected to the company's seventh request for an extension to its exclusivity, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.
Houston-based Kaiser wants to extend its exclusive right to file a plan of reorganization to Oct. 31 and its exclusive right to solicit votes for the plan to Dec. 31. The company's exclusive right to file a plan is scheduled to end Sept. 30.
The unsecured creditors' committee said it believes that if after the sale of the company's interests in its Gramercy, La., plant, assets in Jamaica and Australia, and after two and half years since filing for bankruptcy, the company should be able to file a reorganization plan by Sept. 30. If not, the committee wants to try and file a plan.
Kaiser has not given any compelling reason for extending its exclusivity and appears to be using the extension to gain leverage over its creditors, the committee said.
In its request for an extension, the company said it needs the extension to finalize an agreement with creditors resolving inter-company claims, continue negotiations with the Pension Benefits Guaranty Corp. over pension obligations, continue negotiations with the advisers for and representatives of asbestos and other tort creditors and to proceed with the sale of its Gramercy, La., refinery and of its interests in Queensland Alumina Ltd.
But the unsecured creditors' committee said it and the company have been trying to resolve inter-company claims since January. If they cannot reach a settlement by Sept. 30 then it is unlikely they will resolve them consensually, the committee said.
An Aug. 23 hearing is scheduled.
Kaiser filed for bankruptcy on Feb.12, 2002. Its Chapter 11 case number is 02-10429.
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