Aleris, creditors committee agree to increase plan distribution amount

By Caroline Salls

Pittsburgh, March 26 - Aleris International, Inc. has reached a settlement with its official committee of unsecured creditors under which the amount available for distribution to holders of general unsecured claims under the company's plan of reorganization was increased to $16.5 million from an initial proposed amount of $4 million, according to a company news release.

Aleris said the settlement has no impact on the potential recovery of any other plan classes.

The company said it has begun the process of soliciting votes on the plan from eligible creditors. The solicitation materials include a letter stating the clear support of the creditors committee.

"We are pleased to have the support of the unsecured creditors as we solicit votes to approve the plan, bringing us closer to completion of the Chapter 11 process," chairman and chief executive officer Steven J. Demetriou said in the release.

"This support, along with the support of our largest lenders, reflects their confidence in our ability to emerge by mid-year as planned."

As previously reported, the plan confirmation hearing is scheduled for May 13.

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

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