Wednesday, March 16, 2016
ST. LOUIS - While Noranda's facility at the St. Jude Business Park near Marston is now idle, the Noranda Aluminum Holding Corporation is moving forward on its restructuring. On Friday, the company received an order from the United States Bankruptcy Court for the Eastern District of Missouri granting it access to up to $165 million in debtor-in-possession financing.
With this order, all of the company's first-day motions, including one seeking authorization to continue to pay employee wages, salaries and health and disability benefits, are approved by the court. Collectively, the final court orders will help ensure that Noranda is in a position to continue to operate its business while the company evaluates the options for its various business operations, according to a news release issued by the company.
Kip Smith, Noranda's president and chief executive officer, said the funding will enable the company to move forward on its restructuring process.
"The court's orders should provide our stakeholders with confidence in our ability to continue operating our business as well as underscore the progress we are making with respect to our restructuring efforts," Smith said.
John A. Parker, vice president of communication and investor relations, confirmed Tuesday that production of aluminum and aluminum products had halted at the southeast Missouri Noranda facility.
"It is in an idled position," Parker said. "All but a few employees remain."
At its full production earlier this year, the plant employed more than 800 people.
On Feb. 8, Noranda sought a court-supervised reorganization under Chapter 11 of the Bankruptcy Code. According to the company, it intends to use the court-supervised process to stabilize its upstream operations as it explores ways to make them economically viable.
Already the company's reported its alumina business located in Gramercy, La., successfully completed the expansion of its non-metallurgical or chemical business product capacity by approximately 50 percent by the end of February. It continues to operate at full production.
The company's downstream flat-rolled products business, which is profitable and generates positive cash flow, continues to serve customers in the ordinary course, company officials noted.
Noranda has filed a motion seeking court approval of bidding procedures for a court-supervised auction process for its flat-rolled products business. A hearing regarding those procedures is scheduled for March 21.