THE UNITED States (US) Bankruptcy Court has ruled that the sale of Kaiser's 65 per cent stake in ALPART should be auctioned.
The ruling has terminated a pre-sale agreement with the Swiss-based firm Glencore International to purchase the shares.
Norman DaCosta, vice-president and deputy island supervisor of the National Workers Union (NWU), with responsibility for the bauxite sector, said the Court at its March 22 sitting, ordered that a minimum bid of US$215 million be set for Kaiser's majority stake holdings in ALPART, after which the winning bid will be announced on April 26.
As a result, Kaiser's agreement to sell its shares to Glencore for approximately US$165 million, was terminated without prejudice.
Earlier this month, Russian Aluminium (RusAl), the world's second largest aluminium producer, launched a renewed bid of US$237 million to purchase Kaiser's shares in ALPART, outbidding Glencore.
The Official Committee of Unsecured Creditors of Kaiser, in expressing its support of RusAl's bid, has reportedly filed a motion asking the Bankruptcy Court to reject Glencore's offer and put a new bidding procedure in place.
In the meantime, the Norwegian company, Norsk-Hydro, which owns the remaining 35 per cent stake in ALPART, still has the right of first refusal to purchase the other 65 per cent.
