Bankruptcy court allows Noranda to keep operating

ST. LOUIS — Approval of its initial bankruptcy motions by a court will allow Noranda to continue its operations.

Noranda Aluminum Holding Corp. reported Tuesday the company has received approval from the U.S. Bankruptcy Court for the Eastern District of Missouri for its first-day motions related to its Chapter 11 restructuring.

Company officials said the orders issued by the court will help Noranda continue to operate its business while it evaluates options for its various operations, including at its smelter in New Madrid, Missouri.

“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,” said Kip Smith, Noranda’s president and CEO.

The court granted Noranda interim approval of up to $165 million in new debtor-in-possession financing. The new financing, combined with cash generated from the company’s ongoing operations, will be used to support the business during the court-supervised process, according to a Noranda news release.

The company also received approval to continue paying employee wages, salaries and health and disability benefits. For goods and services provided on or after Feb. 8, the company intends to pay suppliers in full under normal terms, officials said.

Noranda, which was Southeast Missouri’s largest employer, began cutbacks at the New Madrid smelter in February after problems with two of its three pot lines.

On Monday, with the announcement of its bankruptcy filing, the company also said it would shut down the third pot line.

Pertinent address:

391 St. Jude Industrial Park Highway, New Madrid, Mo.