Noranda receives court approval of "First Day" motions to support business operations

Noranda Aluminum Holding Corporation announced that the company has received approval from the United States Bankruptcy Court for the Eastern District of Missouri for its First Day motions related to its Chapter 11 restructuring. Collectively, the First Day orders issued by the Court on either an interim or final basis will help Noranda continue to operate its business in the ordinary course while the company evaluates options for its various business operations.

Kip Smith, Noranda's President and Chief Executive Officer, said, "The Court's approval of our DIP financing and other first-day motions should provide our customers, suppliers, and employees confidence in our ability to conduct this process without disruption to our ongoing business activities."

The Court granted Noranda interim approval of up to $165 million in new debtor-in-possession (DIP) financing. This new financing, combined with cash generated from the company's ongoing operations, will be used to support the business during the court-supervised process. The company also received approval to, among other things, continue paying employee wages, salaries and health and disability benefits. For goods and services provided on or after February 8, 2016, the company intends to pay suppliers in full under normal terms.

As previously announced, on February 8, 2016, Noranda and all of its wholly owned direct and indirect subsidiaries voluntarily filed to initiate a court-supervised process under Chapter 11 of the Bankruptcy Code. The company intends to use the court-supervised process to stabilize its upstream operations as it explores ways to make them economically viable. The company's downstream Flat-Rolled Products business, which is profitable and generates positive cash flow, continues to serve customers in the ordinary course and is likely to undergo a court-supervised auction process.