Two bidders have submitted their bids for the upstream business of Noranda Aluminium, the bankrupt aluminium producer from the US, in an auction held on Wednesday last week. Assets including one of Noranda's idled smelters in Missouri, a bauxite mining site in Jamaica, and an operational alumina refinery in Louisiana were put up for auctioning, stated a court filing.
The bidders were ARG International AG, a Swiss company formed by a former Glencore aluminium trader, and MFR II LLC, a company specializing in industrial and commercial asset disposition and liquidation. The latter also and served as the stalking horse bidder for the bankrupt aluminium producer's assets.
ARG's bid amount was $13.7 million whereas MFR's was $13 million. .jpg)
Judge Barry Schermer of the US Bankruptcy Court for the Eastern District of Missouri in St. Louis is expected to decide the winning bidder during a sale hearing scheduled for 9:30 am CDT (1430 GMT) on Friday.
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The auction took place just a day after Schermer approved MFR as the stalking horse bidder. Noranda Aluminium has agreed to pay a $390,000 "break-up" fee to the company if it does not end up with the upstream assets.
Noranda, headquartered in Franklin, Tennessee, had filed for Chapter 11 bankruptcy reorganization on February 8 this year.
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