Kaiser Aluminum says it will amend disclosure statement

By Jeff Pines

Washington, Dec. 14 - Kaiser Aluminum Corp. said it plans to amend the disclosure statements for its Alpart Jamaica Inc., Kaiser Jamaica Corp., Kaiser Alumina Australia Corp. and Kaiser Finance Corp. subsidiaries before the Dec. 20 hearing.

Kaiser's response was filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The Houston-based aluminum company received a number of objections to its disclosure statements but said "the vast majority of the objections" came from parties it already is battling in court.

Kaiser rejects criticism that the intercompany claims settlement agreement must be approved by the court before proceeding with a hearing for the disclosure statement because the statement makes it clear that unless the agreement is approved, the plan cannot be confirmed.

Furthermore, there is no need to wait for the closing of the sale of KAAC's interests in Queensland Alumina Ltd. because the court has already approved the sale. If the sale does not close, there is a backup sale agreement with Pegasus Queensland Acquisition Party Ltd., Kaiser said.

As for the objection over substantive consolidation, the company said that question is not a disclosure statement issue but a confirmation hearing issue and should be addressed there and not at the Dec. 20 hearing.

Kaiser said it chose substantive consolidation for these subsidiaries to save money. All four subsidiaries have the same joint creditors, it said.

Kaiser filed for bankruptcy on Feb. 12, 2002. Its Chapter 11 case number is 02-10429.

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