St. Louis Judge gives consent to Noranda's aluminium foil business bankruptcy sale

The bankruptcy sale of Noranda's Aluminium Foil business to the Swedish rolled aluminium products supplier Granges AB has been approved by St. Louis bankruptcy Judge Barry Schermer on Tuesday.

According to the Wall Street Journal, Granges will buy Noranda Aluminium's foil division for US$309.7 million, of which US$7.5 million will go to the latter's unsecured creditors as sale proceeds.

The unsecured creditors, as per reports, will also receive 10 per cent of Noranda’s “Primary Aluminium” business sale proceeds. The primary aluminium business which is up for sale presently and will be auctioned off in September includes bauxite mines in St. Ann, Jamaica, a refinery in Gramercy, Louisiana and the now closed smelter in New Madrid, Missouri.



Tennessee-based Noranda Aluminum Holding Corp. filed for bankruptcy in February this year after posting a loss of $26.6 million on sales of $1.36 billion for 2014.

Noranda was the largest consumer of electricity in the state and Ameren Missouri’s largest customer before it decided to idle its New Madrid smelter in March.