Exhibit 99.2
For Information:
Scott Lamb (713) 332-4751 February 4, 2004
KAISER ALUMINUM REPORTS ON RESULTS OF COURT HEARING
HOUSTON, Texas, February 4, 2004 -- Kaiser Aluminum announced that, in
a special hearing on February 2, the U.S. Bankruptcy Court for the District of
Delaware conditionally approved the company's previously announced agreement in
principle with the United Steelworkers of America (USWA), and the recently
concluded agreements in principle with the 1114 Committee, which represents
salaried retirees, and the International Association of Machinists (IAM), which
represents hourly employees at two Kaiser locations, regarding certain pension
and post-retirement benefits. The USWA and the IAM represent the vast majority
of the company's U.S. hourly employees.
The agreements in principle are subject to various approvals, including
ratification by union members, approval by the company's Board of Directors, and
final approval by the Bankruptcy Court. The agreements are also conditioned upon
the satisfactory resolution of certain intercompany claims.
Separately, the company continues to have discussions with four
additional unions concerning pension and post-retirement benefits.
The agreements in principle conditionally approved by the Court provide
for:
- - The termination of existing post-retirement benefit programs - such as
retiree medical -- for current and future retirees who are or were
salaried employees, members of the USWA, and members of the IAM (as well
as surviving spouses and dependents). Under the agreements in principle,
these participants would be provided an opportunity for continued
retiree medical coverage through COBRA or a proposed Voluntary Employee
Beneficiary Association (VEBA). As previously disclosed, Kaiser would
fund the VEBA with a combination of cash, profit-sharing, and other
consideration, subject to certain caps and limits.
- - The termination of existing pension plans for current and future
retirees represented by the USWA and IAM. Under the agreements in
principle, active employees who are represented by the USWA and the IAM
would be provided with an opportunity to participate in one or more
replacement pension plans and/or defined contribution plans. The Court's
conditional approval of this agreement in principle came in conjunction
with a ruling that Kaiser has satisfied the criteria for distress
termination of its U.S. hourly pension plans. Vested benefits under
defined benefit pension plans are guaranteed by the PBGC, up to certain
limits.
After all required approvals - including final Court approval - are
obtained in connection with the agreements in principle, the company will advise
participants of the termination dates for the post-retirement and pension
benefit programs.
On a related matter, as previously reported, the pension plan for
salaried employees was terminated by the Pension Benefit Guaranty Corporation on
December 17, 2003. Kaiser expects that current salaried employees will be
provided with an opportunity to participate in a replacement plan.
"These agreements in principle represent the best efforts of Kaiser and
the other stakeholders to address this unfortunate situation and to provide
employees and retirees with some level of ongoing coverage while at the same
time helping Kaiser to advance toward a planned emergence from Chapter 11 at mid
year," said Jack A. Hockema, president and chief executive officer.
Kaiser Aluminum Corporation (OTCBB:KLUCQ) is a leading producer of
fabricated aluminum products, alumina, and primary aluminum.
F-971
Kaiser Aluminum press releases may contain statements that constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. The company cautions that any such
forward-looking statements are not guarantees of future performance and involve
significant risks and uncertainties, and that actual results may vary materially
from those expressed or implied in the forward-looking statements as a result of
various factors. Actual events could differ materially from those reflected in
the forward-looking statements contained in this press release as a result of
various factors, including but not limited to those relating to approvals
required as outlined above. No assurances can be given that all such approvals
will be obtained.
