Two Kaiser Aluminum units file liquidation plans

By Jeff Pines

Washington, Nov. 1 - Two Kaiser Aluminum Corp. units filed their liquidation plans, the company said. The subsidiaries, Alpart Jamaica Inc. and Kaiser Jamaica Corp., will use the net proceeds from the sale of Alumina Partners of Jamaica, better known as Alpart, to pay their creditors.

Kaiser, a Houston-based aluminum company, estimates the two subsidiaries will have $278.4 million available for distribution. The company plans to keep $20 million in a cash collateral account securing Kaiser's debtor-in-possession financing until the facility is terminated.

The liquidation plan calls for the holders of Kaiser Aluminum & Chemical Corp.'s 9 7/8% and 10 7/8% senior notes to get $162.7 million to $171.1 million in cash. The Pension Benefits Guaranty Corp. would get $82.7 million to $84.3 million, and the holders of the company's 12¾% senior subordinated notes would get $8 million.

The liquidation plan for Kaiser Alumina Australia Corp. calls for the 12¾% holders to get another $8 million.

Kaiser filed for bankruptcy on Feb. 12, 2002 with the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 02-10429.

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