Kaiser Aluminum files motions on selling Australian, African assets

By Jeff Pines

Washington, Sept. 23 - Kaiser Aluminum Corp. said it filed separate motions with the U.S. Bankruptcy Court for the District of Delaware Thursday concerning the sale of its Queensland Australia and Ghanaian assets - including a stalking horse and a second bidder for the Queensland operations.

The court will rule on the motions on Sept. 27.

The stalking horse bidder for Queensland Alumina Ltd. is Comalco Aluminum Ltd., one of the other owners of Queensland. It is offering $308 million in cash and to buy Kaiser's alumina and bauxite inventories, subject to adjustment for $60 million of Queensland debt.

Kaiser is asking for an $11 million break-up fee.

In addition, Glencore AG has separately agreed to bid $400 million in cash plus the other payments and adjustments that Comalco is offering.

Kaiser will pay to Glencore a fee of approximately $7.7 million upon submission of that qualified bid. Without Glencore's bid, there is no guarantee there will be an auction, Kaiser said.

Kaiser, a Houston-based aluminum company, wants other qualified bids submitted by Oct. 25 with an auction to be held Oct. 28 and a Nov. 8 sale hearing.

In addition, the company has asked the court to rule on the sale of its interests in Volta Aluminum Co. The government of Ghana has agreed to buy the company's 90% stake in the company for $18 million, all of which is in escrow. Under the agreement, once Kaiser has court approval for the sale, it can begin drawing on the funds. The sale is also subject to the approval of Ghana's parliament.

A Sept. 27 hearing is scheduled.

Kaiser filed for bankruptcy on Feb. 12, 2002. The company's Chapter 11 case number is 02-10429.

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