Almatis Group exits bankruptcy with equity investment, new debt

By Caroline Salls

Pittsburgh, Sept. 30 - The Almatis Group emerged from Chapter 11 bankruptcy when its plan of reorganization took effect on Thursday, according to a company news release.

The plan was confirmed on Sept. 20 by the U.S. Bankruptcy Court for the Southern District of New York.

"Today's successful emergence from Chapter 11 after just five months allows us to turn our full attention to the growth and development of business again," chief executive officer Remco de Jong said in the release.

"As we have said before, we are emerging from Chapter 11 as a stronger company with significantly reduced debt and a strongly operating business.

"With this stronger financial footing and the support of DIC, who continues to be our majority shareholder, we are able to invest and pursue growth opportunities for the business."

Financing for the distributions under the plan was provided from a new Dubai International Capital LLC equity investment and from $565 million in new debt underwritten by GSO Capital Partners, Sankaty Credit Opportunities IV and GoldenTree Asset Management.

An additional $50 million revolving credit facility is provided by Bank of America Merrill Lynch International and several units of JPMorgan Chase.

Under the plan:

• The company's existing senior debt was repaid in full;

• Junior lenders will receive new PIK notes and a 40% equity stake in the Almatis Group in exchange for their old claims;

• In exchange for a new $100 million equity investment, DIC will retain a 60% equity stake in the Almatis Group;

• Almatis will also pay in full all outstanding pre-bankruptcy trade vendor claims; and

• In exchange for a payment of €1.00 for each class of interests, interest holders will transfer their interests to Almatis Topco 2 on the plan effective date.

Almatis is a Frankfurt, Germany, developer, manufacturer and supplier of premium specialty alumina products. Its Chapter 11 case number is 10-12308.

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