Kaiser Aluminum gets intercompany settlement

By Jeff Pines

Washington, Oct. 6 - Kaiser Aluminum said it has reached an intercompany settlement with its committee of unsecured creditors and subsidiaries.

The agreement will resolve claims among Kaiser and its subsidiaries from pre- and post-Chapter 11 intercompany transactions.

The agreement, which has been in the works for nine months, will be filed with the U.S. Bankruptcy Court for the District of Delaware shortly, the company said.

The settlement provides "for stipulated cash flows related to the commodity asset dispositions" that Kaiser will have access to fund a portion of the company's exit costs, said Jack Hockema, Kaiser's president and chief executive.

Hockema called the deal a "significant milestone in the company's progress toward emergence."

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

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