March 12th, 2010
It is believed that Oaktree Capital Partners is taking control of alumina maker Almatis, a portfolio company of Dubai International Capital (DIC) in a debt-for-equity swap that will reduce the company's 667m debt load.
A few months ago, Oaktree and DIC were working on a financial restructuring proposal for the company, but ended talks as Almatis' economic situation stabilised. According to this proposal, DIC would have injected $50m into the company and kept 60% of it, while 40% would have gone to the subordinated debt holders. This plan was blocked by Oaktree, which then owned a third of the company's senior secured debt.
Frankfurt-based Almatis researches, develops and produces specialty alumina materials used in industrial manufacturing processes such as steel refractories, ceramics and flame retardants. It encompasses manufacturing facilities in Germany, the Netherlands, the US, Japan, China and India. Almatis employs more than 900 people.
DIC acquired Almatis in 2007 for $1.2bn from Rh ne Capital and Teachers' Private Capital.
It is believed that Oaktree Capital Partners is taking control of alumina maker Almatis, a portfolio company of Dubai International Capital (DIC) in a debt-for-equity swap that will reduce the company's 667m debt load.
A few months ago, Oaktree and DIC were working on a financial restructuring proposal for the company, but ended talks as Almatis' economic situation stabilised. According to this proposal, DIC would have injected $50m into the company and kept 60% of it, while 40% would have gone to the subordinated debt holders. This plan was blocked by Oaktree, which then owned a third of the company's senior secured debt.
Frankfurt-based Almatis researches, develops and produces specialty alumina materials used in industrial manufacturing processes such as steel refractories, ceramics and flame retardants. It encompasses manufacturing facilities in Germany, the Netherlands, the US, Japan, China and India. Almatis employs more than 900 people.
DIC acquired Almatis in 2007 for $1.2bn from Rh ne Capital and Teachers' Private Capital.
