Almatis files for bankruptcy

30 Apr 2010 - Almatis has rejected a refinancing package from its owner, Dubai International Capital LLC (DIC), and filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code, the German speciality alumina group said.
The group will undergo a restructuring plan with the support of its largest lender, a fund managed by Oaktree Capital, to reduce debts worth around $1bn.
The Oaktree fund which holds 46% of the group s senior debt will own a majority stake in Almatis after the plan has been confirmed.
Almatis said its business operations will continue as normal with no anticipated impact on customers, trade suppliers or employees.
"The restructuring plan provides Almatis with an orderly process that allows us to address the necessary balance sheet restructuring while continuing to operate our business in the best interests of all stakeholders,"said Almatis CEO Remco de Jong, "We are well prepared and will do everything in our power to complete this process as quickly as possible. Our business is fundamentally sound and I am convinced that once we have fixed our balance sheet, we will emerge from this process as a stronger company."
Earlier in the month, the Enterprise Chamber of the Amsterdam Court of Appeal ruled against a petition by DIC to prevent Oaktree acquiring the group.
DIC had offered Almatis shareholders a refinancing deal but, in its filling to the New York court, Almatis said there was no evidence that the Dubai group could provide the $100m. in new equity or the $25m. revolving line of credit it had proposed.
The Frankfurt-based company, which produces a range of speciality alumina products for ceramics, polishing and refractories, began discussions over possible debt restructuring during Q2 2009. Sales had been affected by reduced demand in the steel sector, where calcined alumina is widely used in refractories.
Almatis is the world leader in speciality alumina production, operating four dedicated alumina facilities and two bauxite sites globally.