CARMAGNOLA, Italy, June 22 /CNW/ - TK Aluminum Ltd. (the "Company"), the
indirect parent of Teksid Aluminum Luxembourg S.a r.l., S.C.A. ("Teksid
Luxembourg"), announced today an update on the status of certain sale
transactions, expected timing of the Fiat indemnity payment and the deferral
an offer to purchase its outstanding 11 3/8% Senior Notes due 2011 (the
"Senior Notes") after the sale of Teksid Aluminum Poland S.p. z.o.o. (the
"Teksid Poland Tender Offer").
The Company announced that on June 19, 2007 it completed the sale of its
minority interest in Cevher Dokum Sanayi AS (the "Turkish JV") to Cevher Jant
Sanayi A.S. ("Cevher"), a company owned by the majority owners of the Turkish
JV, for an aggregate purchase price of EUR3 million. In addition, as
previously disclosed, pursuant to a settlement agreement between the Company
and Teksid S.p.A., which is controlled by FIAT S.p.A. ("FIAT"), entered into
on July 11, 2006 (the "Settlement Agreement"), the Company is entitled to
receive certain payments from Teksid S.p.A., including a payment of
EUR18.0 million upon release of FIAT from its guaranty provided in favor of
one of the Company's lenders for the benefit of a subsidiary of the Company
(the "Fiat Payment"). The Company currently expects that the Fiat Payment
would be made by June 29, 2007.
The Company also announced that it has deferred, based on a number of
considerations, the Teksid Poland Tender Offer in order to continue to assess
the Company's current situation and appropriate course of action.
About Teksid Aluminum
Information about Teksid Aluminum is available on our website at
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning
of the federal securities laws. These statements are based upon management's
current expectations and beliefs and are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. These risks and uncertainties
include market conditions and other factors beyond the Company's control.
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For further information: Investor Relations at +1-248-304-4004 or email