Sherwin Alumina looks to postpone April 20 sale hearing to review bids

By Caroline Salls

Pittsburgh, April 19 – Sherwin Alumina Co. LLC asked the U.S. Bankruptcy Court for the Southern District of Texas to postpone the April 20 hearing on approval of its asset sale, according to a motion filed April 19.

“To preserve estate resources and in the interest of judicial economy, and to provide all parties in interest with sufficient time to review the successful bids, the debtors respectfully request that the court adjourn the sale hearing pending further order of the court,” the company said in the motion.

As previously reported, Sherwin received a stalking horse bid from senior secured lender Commodity Funding, LLC affiliate Corpus Christi Alumina, LLC. Commodity Funding is a subsidiary of Sherwin’s ultimate equity owner, Glencore, Ltd.

The company said the stalking horse bidder agreed to provide consideration of $95.25 million, consisting of a $95 million credit bid on account of the pre-bankruptcy secured lender’s secured claims and, if the holders of general unsecured claims vote to accept Sherwin’s Chapter 11 plan, $250,000 in cash to fund distribution to those creditors.

Sherwin, a Gregory, Texas-based alumina producer, filed for bankruptcy on Jan. 11. The Chapter 11 case number is 16-20012.

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