Almatis’ speciality grades of alumina are largely
consumed in refractory products, such as ladles (pictured)
Speciality alumina producer Almatis GmbH has received authority to enter into a new debt restructure plan funded by parent company and private equity group Dubai International Capital LLC (DIC), casting doubt on its pre-approved debt-for-equity swap with distressed debt investor Oaktree Capital LLC.
The approval paves the way for Almatis to withdraw its Oaktree-sponsored Chapter 11 bankruptcy claim and file a new DIC-backed bankruptcy plan, allowing the company to continue business as usual during a debt reshuffle.
Almatis revealed that the DIC-sponsored reorganisation would allow it to repay senior debt in full with interest, as well as provide for junior creditors.
Crucially, Oaktree’s proposal planned to wipe out junior debt and swap senior debt in exchange for equity (IM 30 April...