Noranda Aluminum files for bankruptcy

Mon Feb 8, 2016 3:49am EST
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Feb 8 (Reuters) - Noranda Aluminum Holding Corp, a producer of primary aluminum and rolled aluminum coils, filed for Chapter 11 bankruptcy protection on Monday and said it will evaluate its various business operations.

The Franklin, Tennessee-based company said challenging market conditions for the aluminum industry and recent disruptions in its primary business operations led to the decision.

Noranda listed both assets and liabilities in the range of $1 billion to $10 billion.

The company and its subsidiaries also entered into an agreement in principle with its existing asset-based loan lenders for up to $130 million in debtor-in-possession (DIP)financing, wherein the company will remain in possession of property upon which creditors have an interest.

Noranda said it has already received a commitment for up to $35 million in DIP financing.

The company said it will use its cash from operations and the new financing to support business during the court-supervised process, if the plans are approved.

Noranda will curtail production at its 253,000 tonne-per-year New Madrid, Missouri smelter if it cannot secure a more favorable price for electrical power, the company said last month.

The case is in U.S. Bankruptcy Court, for the Eastern District of Missouri, Case No 16-10083. (Reporting by Shivam Srivastava in Bengaluru; Editing by Sunil Nair)