Summary
This 8-K filing from Alcoa Inc. (which later became Howmet Aerospace Inc.) on May 31, 2016, primarily discloses a legal action taken by the company. Alcoa has filed a complaint in the Delaware Court of Chancery against its joint venture partner, Alumina Limited, which holds a 40% stake in the Alcoa World Alumina and Chemicals (AWAC) entities where Alcoa holds 60%. The lawsuit seeks a declaratory judgment to prevent Alumina Limited from interfering with Alcoa's planned separation of its businesses. Alumina Limited has reportedly made demands and claimed rights under certain agreements, which Alcoa believes are without merit. The company is proceeding with its plan to split into two independent, publicly-traded companies: an "Upstream Company" (new Alcoa) focusing on bauxite, alumina, aluminum, etc., and a "Value-Add Company" (Arconic) for engineered products and solutions. The AWAC entities will be part of the Upstream Company post-separation.
Key Highlights
- 1Alcoa Inc. filed a lawsuit against its joint venture partner, Alumina Limited, in the Delaware Court of Chancery.
- 2The lawsuit seeks a declaratory judgment to prevent Alumina Limited from interfering with Alcoa's business separation plans.
- 3Alumina Limited allegedly made baseless and improper demands to Alcoa regarding the separation.
- 4Alcoa plans to separate into two independent, publicly-traded companies: a new Alcoa (Upstream Company) and Arconic (Value-Add Company).
- 5The Alcoa World Alumina and Chemicals (AWAC) joint venture, where Alumina Limited owns 40% and Alcoa owns 60%, will be part of the new Alcoa (Upstream Company).
- 6Alcoa believes Alumina Limited's claims regarding consent and other rights under agreements are without merit.
- 7The company is asserting its right to proceed with the planned separation despite the partner's alleged threats.