Noranda announces June 3 deadline for creditors to file claims

Noranda Aluminum Holding Corporation has given its creditors until June 3 to file a claim if they want to be paid as the company goes through bankruptcy proceedings.

The Jamaican Government is among Noranda’s creditors. It is owed billions of dollars under the bauxite levy and has been trying to recover the money from the company.

Noranda’s filing for Chapter 11 bankruptcy protection in February was regarded as a move which could frustrate the Jamaican Government’s efforts to recover the sums an arbitration panel had ruled that Noranda was obligated to pay.

It is learnt from an advertisement pertaining to this matter that any person or entity who might have a claim which arose before the February 8 petition date must file a proof of claim on or before June 3. According to the advertisement, the deadline for governmental creditors to file a claim is August 30.

The notice also states that any person or entity that fails to properly file by the applicable Bar Date will not be able to assert their claim against Noranda in the future. They will also not be able to vote on or receive distributions arising from the bankruptcy proceedings.

Noranda owes the government approximately $3.5 billion under in bauxite levy.

Last year, the Government sought a court injunction to stop Noranda's local subsidiary from exporting bauxite unless it agrees to pay the full tax rate of US$7.56 per tonne of bauxite it exports from Jamaica.

The bauxite company insisted that it should pay US$2.52 instead. In December 2015, the court ruled in favour of the government.

Jamaica has a 51 per cent stake in the company's local subsidiary, Noranda Jamaica Bauxite Limited.