Golden Northwest Aluminum's president sued
The Dalles, Ore. _ Bondholders of Golden Northwest Aluminum have sued the company's president, accusing him of taking assets to fund other interests.
The lawsuit, filed in U.S. District Court in New York, accuses President and Chairman Brett Wilcox of using the assets to finance the developments of new power plants.
Wilcox's actions have put Golden Northwest "on the verge of financial collapse," the bondholders allege. They hold $150 million in corporate debt and are seeking a court order to block the continued transfer of those assets.
A spokesman for Wilcox said Golden Northwest is solvent and financially stable. The power plants are intended to produce electricity for the company's two aluminum plants in Goldendale, Wash., and The Dalles, Ore.
"We believe that the lawsuit is based on a serious misunderstanding," said Eric Redman, an attorney speaking on behalf of Wilcox. "When the facts are fully communicated to the bondholders, we are hopeful we can settle this lawsuit."
The lawsuit was filed Nov. 16 by BNY Western Trust on behalf of the bondholders.
Golden Northwest officials say the power plants are aimed at benefiting the aluminum plants, and are vital to their survival amid roller-coaster energy markets.