How quickly the tide turns. In less than two years the non-metallurgical grade alumina (NMGA) market has been transformed from an investment nightmare into a financial playground of acquisitions, exploration and capacity expansions (see Table 1: Supply developments).
Not all alumina producers have emerged from the recession unscathed: Germany’s leading speciality alumina producer, Almatis GmbH, only last month settled on a debt restructure proposal with parent company Dubai International Capital that will reduce its estimated $1bn. debt. Almatis is expected to file for Chapter 11 bankruptcy to facilitate the restructure.
Despite the alarming headlines, Almatis’ debt restructure will secure the group’s financial position and the bankruptcy filing will protect it from creditor actions during this process. It is understood that DIC has raised around $700m. which will be used to repay senior debt in full with interest and provide for junior creditors (see news p.17). Meanwhile, business...