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DANIELSON HOLDING AGREES TO ACQUIRE ALUMINUM SMELTER

 NEW YORK, Nov. 25 ~PRNewswire~ -- Danielson Holding Corporation (AMEX: DHC) announced today that it has signed a letter of intent to cause a newly formed subsidiary to acquire the outstanding stock of Columbia Falls Aluminum Company. DHC will pay $120 million, of which $60 million is deferred until 1996. The balance of the purchase price will be paid with a senior debt placement and equity supplied by the parent company resources of DHC. DHC is a holding company having a wholly-owned workers' compensation subsidiary located in California, as well as significant tax loss carryforwards.
 Columbia Falls is an aluminum smelting business that operates as a tolling facility for two customers. As a tolling facility, Columbia Falls takes delivery of the customer's alumina ore, subjects the ore to a smelting process and redelivers the finished alumina ingot to the customer. The tolling agreements provide for minimum and maximum tolling fees dependent upon worldwide pricing of aluminum. Columbia Falls' tolling agreements and fixed price power purchase agreement with the Bonneville Power Authority terminate at the end of 1995. The $60 million deferred part of the purchase price to be paid by DHC is payable if and to the extent that these agreements or similar agreements (i) are extended at least until the year 2000 and (ii) provide for at least a projected $20 million in annual earnings before interest, taxes and intangible charges. The current management of Columbia Falls will continue to direct the operations.
 The transaction is subject to usual and customary closing conditions, which include execution of definitive agreements, the availability of bank financing, approval of DHC's board of directors, and completion of due diligence. DHC has not commenced extensive due diligence. The parties will use their best efforts to close the transaction as soon as practicable upon satisfaction of the closing conditions.
 DHC's common stock is listed for trading on the American Stock Exchange (symbol: DHC)
 -0- 11~25~92
 ~CONTACT: C. Kirk Rhein, Jr., president-chief executive officer of DHC, 212-888-0347~
 (DHC)


CO: Danielson Holding Corporation; Columbia Falls Aluminum Co. ST: New York IN: SU: TNM

PS-LD -- NY005 -- 1364 11~25~92 08:00 EST
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Publication:PR Newswire
Date:Nov 25, 1992
Words:356
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