Sources close to Noranda Aluminum Holding Corporation (Noranda) said Friday that it should be a matter of months before the company concludes operations as a corporate entity, given that principal assets are likely to be in the hands of new owners by year end.
“It will just be a matter of selling items like furnishings, doing tax returns and other administrative duties,” the source said, referring to final actions to be taken.
Noranda also announced that it has filed a motion to dismiss its chapter 11 cases and requested that a hearing on such motion be scheduled for October 28, 2016.
The motion followed the announcement that Noranda had entered into an asset purchase agreement with an affiliate of DADA Holdings LLC, under which DADA’s affiliate, New Day Aluminum LLC, will serve as the “stalking horse” bidder in a court-supervised sale process for Noranda’s alumina refinery in Gramercy, Louisiana, and bauxite mining operation in St Ann, Jamaica.
DADA is described as a management company consisting of the former senior management team of Wise Metals Group LLC, which was sold to Constellium NV in January 2015.
We were that the bid was subject to higher or better bids with an auction scheduled to take place on October 18, while a hearing to approve a sale is scheduled for today, October 19, 2016.
In a release on Friday, October 14, it was noted that in connection with the global settlement agreement and dismissal of the chapter 11 cases, it was expected that the company’s secured lenders will appoint an advisor to oversee the distribution of Noranda’s remaining assets and the completion of business activities following the conclusion of the court-supervised restructuring process.
The global settlement agreement remains subject to court approval at a hearing scheduled for October 28, 2016.
Noranda already sold facilities in New Madrid, Missouri, to ARG International AG, and its Downstream Business to GrÃ¤nges AB.
GrÃ¤nges AB secured the winning bid for foil operations for US$324.2 million on a cash and debt-free basis. ARG received court approval for New Madrid following an offer of US$13.7 million.
We understand that the offer made for Gramercy and St Ann operations is US$21 million.
With debts of more than US$1 billion, and just south of US$400 million offered by asset hunters, it is likely that creditors will only receive cents on the dollar in terms of debt owed.
“That is just a part of the bankruptcy process,” the source commented.