Sherwin Alumina seeks court order directing Noranda bauxite shipment

By Sheri Kasprzak

New York, March 18 – Sherwin Alumina Co., LLC is seeking a court order directing the delivery of bauxite shipments from Noranda Bauxite Ltd., according to an emergency motion filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

Sherwin is currently in mediation with Noranda, which is also under bankruptcy protection. Sherwin will be forced to shut its doors soon if it does not receive two bauxite shipments from Noranda by March 30, the company said in its motion.

“In an effort to avoid the loss of thousands of jobs and give the mediation a chance at success, Sherwin respectfully requests that the Texas Bankruptcy Court enter an order directing NBL to deliver two bauxite shipments to Sherwin no later than March 30 at a price equal to NBL’s variable cost plus 10%, all as determined by the Texas Bankruptcy Court on an interim basis at an emergency hearing on or before March 17,” the motion said.

“Sherwin agrees that it will immediately pay to NBL 50% of the price determined by the Texas Bankruptcy Court via wire transfer, and will pay the remaining balance immediately upon delivery in Texas. Any order entered directing the delivery of bauxite on these terms would be subject to the review and consideration of the Missouri Bankruptcy Court on a final basis.”

Sherwin employs nearly 600 people and indirectly supports nearly 1,500 jobs along the Texas Gulf Coast.

The two companies have engaged in discussions for Noranda to continue providing bauxite to Sherwin to avoid an immediate shutdown, but they have been unable to reach an agreement. In order for the shipment to reach Sherwin by March 30, the shipment much leave Jamaica by March 25, the motion said.

A hearing is scheduled for March 21 in the U.S. Bankruptcy Court for the Eastern District of Missouri, which is overseeing Noranda’s bankruptcy case.

Sherwin, a Gregory, Texas-based alumina producer, filed for bankruptcy on Jan. 11. The Chapter 11 case number is 16-20012.

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