Bankruptcy Court allows Noranda to keep operating

ST. LOUIS - Approval of its initial bankruptcy motions by the court will allow Noranda to continue its operations.

Noranda Aluminum Holding Corporation reported Tuesday the Company has received approval from the United States Bankruptcy Court for the Eastern District of Missouri for its first day motions related to its Chapter 11 restructuring. Company officials explained the orders issued by the court will help Noranda continue to operate its business while it evaluates options for its various operations.

"The court's approval of our DIP financing and other first-day motions should provide our customers, suppliers, and employees confidence in our ability to conduct this process without disruption to our ongoing business activities," said Kip Smith, Noranda's president and chief executive officer.

The court granted Noranda interim approval of up to $165 million in new debtor-in-possession financing. This new financing, combined with cash generated from the company's ongoing operations, will be used to support the business during the court-supervised process, according to a news release issued by Noranda. The company also received approval to continue paying employee wages, salaries and health and disability benefits. For goods and services provided on or after Feb. 8, the company intends to pay suppliers in full under normal terms, officials said.