Saturday, May 01, 2010
(This story was originally published Friday)
LONDON (Dow Jones)--Frankfurt-based aluminium company Almatis Group said Friday that its operations in the U.S., Germany, and the Netherlands had filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.
At the same time, Almatis said it had filed a pre-packaged reorganization plan, which has already been agreed by over two-thirds of the holders of Almatis Group's senior first lien debt.
The planned financial restructuring will result in a significant debt reduction and support future growth, Almatis said.
Dow Jones Newswires reported earlier this week that Almatis's management was planning to place the company in Chapter 11 as part of distressed debt investor Oaktree Capital's restructuring plan to cut Almatis's $1 billion debt down to around $422 million in a debt-for-equity swap.
Dow Jones reported this week that Dubai International Capital, the investment arm of Dubai Holding which bought Almatis for around $1.2 billion in 2007, had written to senior lenders to Almatis urging them to vote against the restructuring plan.
Creditors entitled to vote on the plan have until May 7 to submit their votes.
Earlier this month, a Dutch court turned down DIC's petition for an injunction to prevent Oaktree's restructuring.
-By Mark Brown and Ainsley Thomson, Dow Jones Newswires; + 44 (0)207 842 9485, mark.brown@dowjones.com
(END) Dow Jones Newswires
01-05-10 0630GMT
