RUSSIAN ALUMINUM (RusAL), the world's second largest aluminum producer, has launched a renewed bid of US $237 million to purchase Kaiser's 65 per cent share in Alpart, the alumina refinery based at Nain, St. Elizabeth.
Norman DaCosta, the National Workers' Union's vice president and deputy island supervisor with responsibility for bauxite, reported this yesterday.
Previously, RusAL had tendered a bid of US$215 million but the Official Committee of Unsecured Creditors of Kaiser, to which the bauxite company is indebted, negotiated a higher bid.
The new offer means that RusAL has now out-bid Glencore with which Kaiser had previously agreed to sell its stake in Alpart for US $160 million, subject to an approval of the US Bankruptcy Court in Delaware at its March 24 sitting.
The sale would also depend on whether Norsk-Hydro, the 35 per cent stakeholder in Alpart, opted not to exercise its rights of first refusal, Mr. DaCosta said.
Reports reaching The Gleaner yesterday were that the Official Committee of Unsecured Creditors of Kaiser, which is supporting RusAL's bid, has filed a motion, asking the Court to reject Glencore's offer and put in place a new bidding procedure that would see Kaiser and RusAL entering into a purchase agreement allowing prospective bidders to register alternative bids not less than RusAL's offer, plus closing costs, by April 23.
If the court accepts this proposal and qualified bids are received by April 29, Kaiser's 65 per cent share in Alpart would be auctioned on April 29. However the committee has requested that the court approves the sale to RusAL if there is no competing bid.
In the meantime, operations at Alpart continue to be very positive and workers are optimistic that Kaiser will eventually secure a mutually satisfactory agreement, Mr. DaCosta said.
