Kaiser Aluminum Sues Noteholders To Guard Jamaican Units
Updated: Tuesday, February 12, 2002 04:21 PM ET
WASHINGTON (Dow Jones)--Kaiser Aluminum Corp. (KLU), which filed for Chapter 11 earlier Tuesday, has asked a bankruptcy court to prohibit certain noteholders from enforcing guarantees against two of the company's Jamaican subsidiaries that aren't bankrupt.
In a suit filed with the U.S. Bankruptcy Court in Wilmington, Del., the aluminum products maker and its bankrupt operating unit Kaiser Aluminum & Chemical Corp. said the move is needed to protect their own value. They said moves against the Jamaican units, including a possible involuntary bankruptcy filing, could prevent them from getting materials they need to meet customer needs, resulting in a loss of significant revenue.
Earlier Tuesday, Kaiser, Houston, and 14 of its affiliates filed for Chapter 11 bankruptcy protection in the bankruptcy court in Wilmington. The company listed $3.3 billion in assets and $3.1 billion in debt. It has suffered from low aluminum prices and a heavy debt load.