Noranda Aluminum Holding Corporation (Noranda) has entered into an asset purchase agreement with Gränges AB, under which a subsidiary of Gränges will serve as the "stalking horse" bidder for Noranda's Flat-Rolled Products business in a court-supervised sale process designed to maximise the value of such business.
The agreement values the Flat-Rolled Products business at $302.5 million, on a debt-free, cash-free basis. If other qualified bids are submitted, the Company will conduct an auction pursuant to section 363 of U.S. Bankruptcy Code. The asset purchase agreement with Gränges sets the floor for the auction, which is designed to achieve the highest or otherwise best offer.
A hearing to approve the stalking horse bid is scheduled for June 22, 2016. Upon court approval of the stalking horse bid, the deadline for submitting qualified bids is expected to be June 29, 2016. If qualified bids are submitted, an auction would be held on July 7, 2016. A hearing to approve a sale will take place on July 14, 2016.
The proposed transaction with Gränges is being undertaken pursuant to section 363 of the U.S. Bankruptcy Code and is subject to, among other things, higher or otherwise better bids, Court approval and other customary conditions.
The Flat-Rolled Products business will continue to serve customers in the ordinary course as it moves through the court-supervised sale process.
Maximising the Value of the Upstream Business
Separately, Noranda today filed a motion with the Bankruptcy Court seeking approval of Bidding Procedures to conduct an orderly and efficient sales process of its Upstream Business.
The motion outlines a sale process that is open to all qualified bidders subject to the rules of the bidding procedures. Through this process, Noranda will select the highest or otherwise best offer for the sale of all, or substantially all, of the assets comprising its Upstream business.
Noranda expects the bidding procedures motion to be heard by the Bankruptcy Court on July 14, 2016. Under the proposed bidding procedures, the deadline to submit qualified bids is September 15, 2016 and, if multiple bids are submitted, an auction would take place on September 22, 2016. Subject to the Court's availability, a hearing to approve a sale will take place on September 27, 2016.
The Upstream business will continue to operate in the ordinary course as it has throughout the company's chapter 11 case.