Almatis looks to postpone plan hearing to consider alternate proposal

By Caroline Salls

Pittsburgh, July 7 - Almatis BV will ask the U.S. Bankruptcy Court for the Southern District of New York to postpone its plan of reorganization confirmation hearing to allow the company to consider an alternate plan proposal made by its largest equity holder Dubai International Capital, LLC, according to a Wednesday court filing.

Almatis attorney Michael A. Rosenthal said in a letter to the court that the Dubai proposal calls for a refinancing of the company's senior debt under which senior debtholders could be paid in full and junior debtholders could receive a greater distribution than under Almatis' plan.

Unlike previous Dubai offers, Rosenthal said this proposal comes with evidence of financing.

Rosenthal said the company believes that "the alternate plan proposal is sufficiently compelling to warrant further diligence and negotiation before the debtors' management can evaluate whether they have a fiduciary duty to pursue its implementation."

As a result, the company plans to ask the court Thursday to adjourn the plan confirmation hearing for three weeks.

In addition, Rosenthal said the company wants to use the current July 19 plan confirmation hearing for a status conference to let the court know whether it will move forward with the current plan or a plan based on the Dubai proposal.

Almatis is a Frankfurt, Germany, developer, manufacturer and supplier of premium specialty alumina products that filed for bankruptcy on April 30. Its Chapter 11 case number is 10-12308.

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