Apollo should answer for actions

Recently there have been a number of news items about the bankruptcy of the Noranda Holding Co. and the closing of its aluminum plant in New Madrid, Missouri. According to the Wall Street Journal, the company is alleging that this action is necessitated by falling aluminum prices, high electricity prices, disruptions at an important plant and a below-market contract with a major customer.

It is interesting that there is no mention in the Journal or the local news media of the fact that in May 2007, Apollo Global Management, a New York private-equity firm, initiated a leveraged buyout of Noranda. This action saddled Noranda with $1 billion in debt while Apollo paid itself $300 million in special dividends. Noranda paid more than $160 million in regular dividends after Apollo took the company public in 2010 and retained a controlling stake.

Then in May 2015, Apollo sold its entire stake in Noranda just weeks after the Missouri regulators cut electric rates at its smelter. Apollo's holdings amounted to 22.8 million shares of stock, which at this time was valued at $2.20 per share.

I think it would be interesting to learn more about the full effect of Apollo's actions on the current situation where:

• Noranda reports about 705 millions dollars of debt.
• The value of its stock declined to be less than six cents a share, and
• The pension system is underfunded by 159 million dollars.

It appears Apollo Management has much for which it should answer.

JOHN PIEPHO, Cape Girardeau