Kaiser Aluminum Could Leave Bankruptcy in January

2005-09-15

Kaiser Aluminum Corp. on Thursday said a U.S. federal bankruptcy court has approved a disclosure statement for its latest reorganization plan, which could lead to it emerge from bankruptcy by late January or early February 2006. The plan would result in the cancellation of the equity interests of current stockholders and the distribution of equity in the emerging company to creditors or creditor representatives. The 60-year-old aluminum producer said the U.S. Bankruptcy Court for the District of Delaware set confirmation hearings on the plan for Jan. 9 and Jan. 10. Jack Hockema, president and chief executive of the Foothill Ranch, California, company, said the ruling was the first of three final milestones for Kaiser's successful completion of its reorganization. "We anticipate that the remaining two -- voting by the creditors and confirmation by the bankruptcy and district courts -- will be completed according to the court's schedule within the next four months," he said in a statement. Kaiser said its restructuring would resolve pre-petition claims -- including retiree medical, pension, asbestos and other tort, bond, and note claims -- that are currently subject to compromise. Most new equity under the plan would be distributed to two voluntary employee benefit associations created in 2004 to provide medical benefits or funds to defray the cost of medical benefits for salaried and hourly retirees, Kaiser said. It added that all pre-petition and future personal injury claims for asbestos, silica and coal tar pitch products, and existing claims regarding noise-induced hearing loss would be permanently resolved by the formation of trusts. Kaiser makes fabricated aluminum products for aerospace and high-strength, general engineering, automotive and custom industrial use. The company has more than 2,000 employees and 11 plants in North America with a capacity to produce more than 400 million pounds annually.