Kaiser indenture trustee granted request to reconsider overruling plan confirmation objections

By Caroline Salls

Pittsburgh, Feb. 8 - Kaiser Aluminum Corp. creditor and indenture trustee Law Debenture Trust Co. of New York's motion for reconsideration of the U.S. Bankruptcy Court for the District of Delaware's order overruling objections to confirmation of the company's plan of reorganization was granted Wednesday by the court.

Law Debenture appealed the order overruling the plan objections on Jan. 3.

As previously reported, the court's decision determines the plan's treatment of creditors under two separate plans of liquidation for two Kaiser Aluminum & Chemical Corp. subsidiaries, which were confirmed on Dec. 20.

Law Debenture Trust Co. of New York and Liverpool LP objected to the plans because of the subordination of 12¾% notes issued in 1993 by Kaiser subsidiary Kaiser Aluminum and Chemical Corp. to the company's 9 7/8% senior notes issued in 1994 and 10 7/8% senior notes issued in 1996.

The objections questioned what debt qualifies as senior to the 1993 notes under the notes' indenture.

In her memorandum of opinion overruling the objection, judge Judith K. Fitzgerald said it was clear that the parties to the 1993 notes indenture all agreed that the 1993 notes could be subordinated to debt that did not exist yet.

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

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