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Kaiser Aluminum Files For Bankruptcy
Yahoo News ^
| Tue Feb 12, 9:29 AM ET
| staff
Posted on 02/12/2002 7:04:46 AM PST by shrinkermd
HOUSTON (Reuters) - Kaiser Aluminum Corp. on Tuesday said it filed for Chapter 11 bankruptcy in Delaware along with its operating subsidiary, Kaiser Aluminum & Chemical Corp.
Kaiser said it expects to get $300 million of debtor-in-possession financing from Bank of America on Tuesday.
Kaiser said that weak aluminum prices and business conditions amid a broad economic slowdown was further exacerbated by asbestos litigation and growing medical and pension costs for retirees.
Kaiser missed a debt payment of $25.5 million in January. Sources said it was unlikely to have enough cash to pay about $174 million in principal to its bondholders when this comes due on Friday.
Shares of Kaiser closed at 51 cents on Monday on the New York Stock Exchange (news - web sites).
TOPICS: Business/Economy; News/Current Events
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More proof that we are in a debt repudiation depression and not in a simple, inventory recession.
Comment #2 Removed by Moderator
To: Friend_Or_Foe
When do you think this melt down will stop? exacerbated by asbestos litigation and
growing medical and pension costs for retirees. It'll be awhile.
3
posted on
02/12/2002 7:09:36 AM PST
by
Pistias
Comment #4 Removed by Moderator
To: Pistias
This is not good news for the Spokane area. Kaiser Aluminum was one of the big employers around here. Maybe we'll get lucky and some other firm will buy up the mills and start making aluminum again. More likely we'll just import all of our aluminum, like we import everything else. This is not a healthy trend.
To: Billy_bob_bob
Gotta wonder which jobs we want to preserve. The jobs in the aluminum & other base metals industries or the jobs in finished goods which use and upgrade these products...
To: shrinkermd
That makes Alcoa a monopoly - do you think they will get handled ala Microsoft or do they grease the wheels of politics.
To: Revelation 911
I wonder who their auditor was?
8
posted on
02/12/2002 7:24:44 AM PST
by
Double U
To: Friend_Or_Foe
Good grief. When do you think this melt down will stop? I don't think it will.
To: shrinkermd
Damn!!! Where are we going to get our hats?
10
posted on
02/12/2002 7:25:14 AM PST
by
YaYa123
To: Billy_bob_bob
Blame it on what the article blames it on...for every worker in the metals (steel) industry, there are 6 retirees that have to be supported.
85% of steel the USA uses is made here. If we restricted imports, prices would skyrocket due to the lack of supply.
Comment #12 Removed by Moderator
To: GuillermoX
Correct. I had not heard that Kaiser was connected to asbestos liability. But, given the way the plaintiff's bar has targeted this issue, I'm surprised there are any base-industries in the US not on the asbestos list.
To: YaYa123
Buy up the tin foil now and resell to all of our friends. I wonder what ad time costs on the Art Bell program......
14
posted on
02/12/2002 7:35:08 AM PST
by
tracer
To: shrinkermd
I had heard that Kaiser was not opening any new medical sites a couple years ago. Now I know why.
Or (dunb question time) is Kaiser Permanente connected with Kaiser at all? I thought that was how Kaiser Permanente started.
To: shrinkermd
Aircraft are one of the big consumers of aluminum. Boeing is not building many new airliners these days. Hence bad times in the aluminum business.
--Boris
16
posted on
02/12/2002 7:40:09 AM PST
by
boris
To: Friend_Or_Foe
The fall of 2004.
17
posted on
02/12/2002 7:40:49 AM PST
by
rollin
To: GuillermoX
Go to Fl, count the retired heavy industry union members living very well, auto, steel etc etc. Coincidence, perhaps but facts are facts. In this world wide trade business, the committments made by industry cannot be met.
18
posted on
02/12/2002 7:42:23 AM PST
by
cynicom
Comment #19 Removed by Moderator
Comment #20 Removed by Moderator
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