Almatis, Dubai International Capital’s debt-laden alumina business, has filed for bankruptcy protection in the US in an attempt to implement a pre-packaged restructuring that would see it taken over by Oaktree Capital.
The Chapter 11 filing yesterday morning, is the latest twist in an intensifying battle between the company’s lenders and shareholders over the future ownership of the business. DIC said it would vigorously dispute the plan in court.
Last month more than two-thirds of senior lenders agreed to back a deal that would see Oaktree, the US buy-out fund that owns 46 per cent of the senior debt, owning about 80 per cent of the company post restructuring. The plan would more than halve Almatis’ debts to about $422m, with senior lenders, which are owed about $680m, being offered a choice of options under the restructuring.
The plan will wipe out the debt claims of more subordinated mezzanine and second-lien lenders, as well as DIC’s equity stake.
DIC has been opposed to the plan and has already tried, unsuccessfully, to block the process by petitioning the Dutch courts. [Read More]
