Aleris indenture trustee, committee object to disclosure statement

By Lisa Kerner

Charlotte, N.C., March 10 - Aleris International, Inc. indenture trustee Wilmington Trust Co. filed an objection to the company's proposed disclosure statement for its joint plan of reorganization, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is scheduled for March 12.

Wilmington Trust in its motion said "the convenience class created under the plan may cause the plan to be unconfirmable, because it results in the vastly unequal treatment of similarly situated unsecured creditors and does not comply with section 1122(b) of the Bankruptcy Code."

The debtors should, according to Wilmington, disclose the basis and justification for the convenience class. Wilmington does not believe the class is necessary.

In addition, Wilmington said in the motion that the plan "does not provide equality of treatment among unsecured creditors."

Committee files objection

The official committee of unsecured creditors also filed an objection to Aleris' proposed disclosure statement on Wednesday.

According to the committee's filing, it believes the disclosure statement and accompanying solicitation materials should include a letter from the committee.

The disclosure statement lacks "certain inadequacies of the plan" as well as the committee's objection, the committee filing said.

As previously reported Aleris filed its plan in February and said the plan filing positioned the company to emerge from Chapter 11 bankruptcy by mid-year.

Aleris, a Beachwood, Ohio-based producer of aluminum rolled products and extrusions, aluminum recycling and specification alloy, filed for bankruptcy on Feb. 12, 2009. Its Chapter 11 case number is 09-10478.

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