Months after the parent company of Noranda Jamaica Bauxite, Noranda Aluminum Holding indicated that it was having financial challenges, it filed for Chapter 11 bankruptcy protection on Monday.
The company said it will evaluate its various business operations.
According to Reuters, the US based company said challenging market conditions for the aluminum industry and recent disruptions in its primary business operations led to the decision.
Noranda listed assets and liabilities in the range of US$1 billion - US$10 billion .
The company and its subsidiaries also entered into an agreement in principle with some creditors for up to 130 million dollars in special financing which will allow it to retain property it currently holds.
Noranda said it has already received a commitment for up to US$35 million in similar financing.
The company said it will use its cash from operations and the new financing to support business during the court-supervised process, if the plans are approved.
Noranda Jamaica Bauxite continues production
Meanwhile, Noranda is continuing production and its partnership with the Government of Jamaica at its Noranda Jamaica Bauxite Partners mine in St. Ann.
Noranda says in order to maintain Noranda Bauxite as a secure source of bauxite supply to its alumina operations, it continues to focus its efforts on improving productivity and reducing its costs.
It says its focus is also on maintaining bauxite sales volumes and achieving improved pricing with respect to its largest third party customer, Sherwin Alumina.
Sherwin filed for Chapter Eleven relief last month.
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