US company enters agreement to test market for assets of bankrupt Noranda
New Day Aluminium, an affiliate of DADA Holdings has entered into a stalking horse asset purchase agreement to acquire certain assets of Noranda Aluminium Holding Corporation in a court supervised sale process.
A stalking horse agreement facilitates an attempt by a bankrupt debtor to test the market for its assets in advance of an auction of them.
In February, Noranda filed for chapter 11 bankruptcy in the United States.
DADA Holdings says Noranda's assets comprise its alumina refinery in Gramercy, Louisiana and its bauxite mining operation in St Ann, Jamaica.
Noranda's alumina refinery in Gramercy is the only operating alumina refinery in the United States and employs over 400 people, with the capacity to produce over 1.2 million tons of smelter grade and chemical grade alumina.
The mine in St. Ann - the only one in Jamaica which can directly export bauxite - employs over 800 people and has the capacity to produce up to 5.2 million metric tons of premium grade bauxite ore annually.
The St Ann mine is also the sole supplier of bauxite to Noranda's alumina refinery in Gramercy.
David D'Addario, CEO of DADA, said his company is pleased to have been selected as the stalking horse for Noranda's assets and is looking forward to completing the transaction.