This is a correction of the announcement from 18:29 13.06.2016 EDT. Reason for the correction: Company name presented incorrectly in headline

Franklin, Tennessee - June 13, 2016 - Noranda Aluminum Holding Corporation (OTC: NORNQ) ("Noranda" or the "Company") today announced that it has entered into an asset purchase agreement with Gränges AB, under which a subsidiary of Gränges will serve as the "stalking horse" bidder for Noranda's Flat-Rolled Products business in a court-supervised sale process designed to maximize the value of such business. 

The agreement values the Flat-Rolled Products business at $302.5 million, on a debt-free, cash-free basis.  If other qualified bids are submitted, the Company will conduct an auction pursuant to section 363 of U.S. Bankruptcy Code.  The asset purchase agreement with Gränges sets the floor for the auction, which is designed to achieve the highest or otherwise best offer.  

A hearing to approve the stalking horse bid is scheduled for June 22, 2016.  Upon court approval of the stalking horse bid, the deadline for submitting qualified bids is expected to be June 29, 2016.  If qualified bids are submitted, an auction would be held on July 7, 2016. A hearing to approve a sale will take place on July 14, 2016.    

The proposed transaction with Gränges is being undertaken pursuant to section 363 of the U.S. Bankruptcy Code and is subject to, among other things, higher or otherwise better bids, Court approval and other customary conditions.

The Flat-Rolled Products business will continue to serve customers in the ordinary course as it moves through the court-supervised sale process.

Maximizing the Value of the Upstream Business

Separately, Noranda today filed a motion with the Bankruptcy Court seeking approval of Bidding Procedures to conduct an orderly and efficient sales process of its Upstream Business.    

The motion outlines a sale process that is open to all qualified bidders subject to the rules of the bidding procedures.  Through this process, Noranda will select the highest or otherwise best offer for the sale of all, or substantially all, of the assets comprising its Upstream business.

Noranda expects the bidding procedures motion to be heard by the Bankruptcy Court on July 14, 2016.  Under the proposed bidding procedures, the deadline to submit qualified bids is September 15, 2016 and, if multiple bids are submitted, an auction would take place on September 22, 2016.  Subject to the Court's availability, a hearing to approve a sale will take place on September 27, 2016.

The Upstream business will continue to operate in the ordinary course as it has throughout the Company's chapter 11 case.

Additional Information

Additional information is available on the restructuring page of the Company's website, www.norandaaluminum.com/restructuring. Court filings and other information related to the court-supervised proceedings are available at a website administered by the Company's claims agent, Prime Clerk, at http://cases.primeclerk.com/noranda. The Company has also established a Restructuring Hotline at 855-410-7360 (U.S.), or 646-795-6965 (international), as well as a Customer Hotline at 855-252-2156 (U.S.), or 917-651-0441 (international).

About the Company

Noranda is an integrated producer of primary aluminum and high-quality rolled aluminum coils. The Company has two businesses: an Upstream Business and a Downstream Business. The Upstream Business is one of the largest non-metallurgical or chemical grade alumina producers in North America. The Downstream, or Flat-Rolled Products Business, is one of the largest aluminum foil producers in North America, and consists of four rolling mill facilities.

Forward-Looking Statements

For this press release, statements that are not purely historical are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "plan," "intend," "will" and other similar expressions.  All forward-looking statements made by Noranda reflect the Company's expectations and not guarantees of future performance and are subject to various risks, uncertainties and factors relating to Noranda's operations and business environment, and the progress of its Chapter 11 Case, all of which are difficult to predict and many of which are beyond Noranda's control, which could cause Noranda's actual results to differ materially from those matters expressed in or implied by these forward-looking statements. Such factors include, but are not limited to: those described under the "Risk Factors" section and elsewhere in Noranda's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 which is available on Noranda's website www.norandaaluminum.com and on the Securities and Exchange Commission's website at www.sec.gov; unfavorable economic, financial and business conditions; risks and uncertainties relating to the chapter 11 filing by Noranda; Noranda's ability to obtain Bankruptcy Court approval with respect to motions filed in the Chapter 11 Case, including with respect to its debtor-in-possession financing facilities; the effectiveness of any strategies employed by Noranda with respect to its overall restructuring activities, including those intended to address liquidity and capital resources issues; potential adverse effects of the Chapter 11 Case on Noranda's liquidity, results of operations, and relationships with key constituents; any actions taken by creditors, regulators, or other third parties during the pendency of the Chapter 11 Case; the length of time that Noranda will operate under Chapter 11 protection and its continued ability to access operating capital during the pendency of the proceedings; risks associated with third party motions in the Chapter 11 Case, which may interfere with Noranda's ability to confirm and consummate a Chapter 11 plan; and the ability of the debtors to negotiate, develop, confirm and substantially consummate a Chapter 11 plan.

Forward-looking statements made by Noranda in this press release, or elsewhere, speak only as of the date on which the statements were made. New risks and uncertainties arise from time to time, and it is impossible for Noranda to predict these events or how they may affect it or its anticipated results.  Noranda assumes no obligations to update any forward-looking statements made in this press release to reflect subsequent events or circumstances or actual outcomes. 

Media Inquiries

John A. Parker
Vice President of Communication and Investor Relations
(615) 771-5734
john.parker@noralinc.com 

Michael Freitag
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

 





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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Noranda Aluminum Holding Corporation via Globenewswire

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