TK Aluminum will seek to defer required tender offer for 11 3/8% notes

By Angela McDaniels

Seattle, May 21 - TK Aluminum Ltd. said that holders of a majority of its 11 3/8% senior notes due 2011 have agreed in principal to waive the company's obligation to tender for the notes within 30 days of its sale of Teksid Aluminum Poland Spzoo.

On April 18, the company said it would be required to hold a tender offer for the notes using proceeds from the asset sale within 30 days.

TK Aluminum now expects to begin soliciting consents from the 11 3/8% noteholders to waive any default due to the tender offer not being held within 30 days and to extend the deadline by which the tender offer must be held.

The company will also solicit consents to sell its minority interest in Turkish joint venture Cevher Dokum Sanayi AS to majority owner Cevher Jant Sanayi AS.

Holders of a majority of the notes have agreed in principal to the proposed €3 million sale. Cevher Jant Sanayi's offer to buy TK Aluminum's minority interest is valid until June 11.

Completion of the Cevher Dokum Sanayi sale is conditioned upon the receipt of consents from holders of at least a majority of the notes.

TK Aluminum received notice of the agreement in principal to defer the tender offer and to approve the Turkish interest sale from advisers to the ad hoc committee of noteholders, according to a company news release.

At a meeting on May 10, the ad hoc committee was presented an analysis of some strategic options TK Aluminum has considered, including the sale and restructuring of its Italian subsidiaries Teksid Aluminum Srl and Teksid Aluminum Getti Speciali Srl.

The company said it is in discussion with potential purchasers of these subsidiaries and of its subsidiaries in France and Germany. The consummation of any sale would be subject to consent from holders of a majority of the notes.

TK Aluminum is the Carmagnola, Italy-based parent of Teksid Aluminum Luxembourg Sarl SCA, a maker of aluminum engine castings for the automotive industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.