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January 26, 2004
Monthly Update to Customers, Employees, Suppliers, and Friends of Kaiser Aluminum:
In Today’s Court Hearing
Today’s Court hearing was cancelled because of bad weather in the mid-Atlantic states. The cancellation has no practical impact because today’s agenda had been composed of strictly routine matters, for which the Court has the flexibility to issue rulings without the necessity of a hearing. Prior to today’s scheduled hearing, the Court approved the sale of an additional parcel of surplus land near the Mead, Washington, smelter for $7.8 million. The next regular monthly hearing is scheduled for February 23, 2004. The Court has also scheduled a special hearing on February 2 to hear arguments regarding the motions we filed on January 11 regarding retiree medical benefits, hourly pensions, and the collective bargaining agreements.
Sale of Alpart Alumina Refinery
Kaiser announced on January 21 that it has signed an agreement to sell its interests in the 65% owned Alpart alumina refinery in Jamaica to Glencore AG. Subject to several closing conditions, we expect the transaction to close late in the first quarter or early in the second quarter of 2004. In a related move that may have a bearing on the ultimate value of the transaction, the company has filed several Court motions to reject or invalidate certain alumina supply arrangements. The Alpart sale is part of our previously announced plan to explore the sale of commodity assets and represents another step toward our stated goal of emerging from Chapter 11 in mid 2004.
Liquidity Update
Kaiser entered 2004 with liquidity of approximately $180 million.
Jack A. Hockema
President and Chief Executive Officer
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