Asia Aluminum expected to sell assets to consortium

A court in Hong Kong is expected to allow a controversial Chinese-led offer to buy Zhaoqing Guangdong-based Asia Aluminum to go through, the Financial Times reported. The high-profile Chinese firm had been placed in provisional liquidation earlier this year after foreign investors rejected a US$1.2 billion debt restructuring plan. Asia Aluminum’s provisional liquidator, the firm Ferrier Hodgson, has scheduled a court hearing to receive approval for the sale of three significant units of the firm to a management-backed group called Golden Concord Pacific, for nearly US$500 million including debt. Although Norsk Hydro, a Norwegian aluminum firm, had approached the Zhaoqing municipal government in its last-ditch effort to buy Asia Aluminum, the firm withdrew from the bidding after its overtures were met with a cool response. People familiar with the situation said Norsk was not prepared to fight a tough political battle, given the hostile noises towards its foreign investment and Chinese wishes that the restructuring process not be delayed.