According to a corporate release, Noranda Aluminum Holding announced that it has obtained U.S. Bankruptcy Court approval for the sale of its downstream business to Granges AB for an enterprise value of $324.2 million on a cash and debt-free basis. The Company expects to close the transaction on or about August 22, 2016, subject to certain closing conditions.
In connection with Court approval of the sale of the downstream business, Noranda Aluminum has reached an agreement in principle with certain of its existing secured lenders and the unsecured creditors’ committee. The agreement includes a proposed settlement between the parties that will facilitate resolution of the Company’s Chapter 11 case and provide the requisite funding necessary to complete the sale process for the upstream business, subject to certain milestones. Noranda Alumina has continued to operate at full production as it serves its growing customer base, supplied in full by Noranda Bauxite.
Both entities, along with the temporarily idled smelter in New Madrid, are included in the sale process for the upstream business, for which the Company notes it has received multiple expressions of interest.
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