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Noranda Aluminum Holding Sale, Procedures Approval Sought

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Noranda Aluminum Holding filed with the U.S. Bankruptcy Court a motion for entry of a stalking horse order (a) approving Norandal USA’s into an asset purchase agreement (stalking horse agreement) with Granges AB (the parent) and Beagle Acquisition) as the stalking horse purchaser for the sale of certain of the Debtors’ assets associated with the flat rolled products business owned and operated by Norandal USA (the downstream business at the rolling mills located in (i) Huntingdon, TN, (ii) Newport, AK and (iii) Salisbury, NC) and (b) authorizing a break-up fee and expense reimbursement in connection with the bid protections.

The purchase price is a gross consideration of $302.5 million and net cash consideration of $288 million, subject to adjustment to the extent working capital is less than or greater than $60 million.

The bid motion explains, “The Debtors also seek approval of the following Bid Protections: (a) a break-up fee of 1.5% of the cash purchase price (the ‘Break-Up Fee’) (which is $4.32 million based on the Cash Consideration) and (b) expense reimbursement not greater than $1.5 million (the ‘Expense Reimbursement’).”

Separately, the Debtors also filed with the Court a motion to sell its upstream business, free and clear of liens, under 11 USC 363(f). This sale motion explains, “In sum, the Debtors, in consultation with their advisors, believe that pursuing a Sale at this time for the Upstream Business is the course of action most likely to maximize value. By this Motion, the Debtors seek authority to implement a sale process as outlined in the Bidding Procedures for the Upstream Business so as to efficiently market and solicit offers for the Subject Assets.”

The Court scheduled a July 14, 2016 hearing to consider both motions, with objections due by July 7, 2016. Read more Noranda bankruptcy news.

The post Noranda Aluminum Holding Sale, Procedures Approval Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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