Almatis bankruptcy judge approves disclosure statement

Aug. 25, 2010 - A judge has approved the Almatis Holdings BV disclosure statement, helping clear the German aluminum maker's path out of bankruptcy.
The disclosure statement outlines a new structure for Almatis, in which Dubai International Capital LLC would retain 60 percent of the company while junior creditors would own 40 percent. Dubai International had bought Almatis in 2007.
Under the plan, senior creditors would recover 100 percent of their investment, while holders of second-lien claims would recover between zero and 90 percent.
The statement will now be sent to creditors for a vote.
U.S. Bankruptcy Judge Martin Glenn also approved a settlement agreement with Almatis lender Oaktree Capital Management LP, which had earlier opposed Dubai International's plan to retain control over Almatis. Oaktree agreed to give up its fight in return for full payment of its senior lender claims and as much as $5.25 million for reimbursement of its fees and expenses.