The Bankruptcy Court for the Southern District of New York has confirmed the Almatis Group’s amended plan of reorganisation sponsored by Dubai International Capital, the international investment arm of Dubai Holding.
DIC is confident of a strong future for Almatis which has performed well since rebounding from the global downturn, generating free cash flow and Ebitda margins of approximately 20 per cent.
DIC is investing USD100m new equity in Almatis, in addition to approximately USD550m in new debt financing, underwritten by GSO Capital Partners, Sankaty Credit Opportunities IV, GoldenTree Asset Management, Bank of America, Merrill Lynch International and several units of JP Morgan Chase.
This new financing allows for the complete repayment of the existing senior debt at par. In addition, the junior lenders to Almatis are exchanging their claims for new instruments and a 40 per cent equity stake in the Almatis Group.
Anand Krishnan, chief executive officer of DIC, says: “Today’s final court approval of the plan of reorganisation is an excellent outcome for all parties, and we expect Almatis to exit Chapter 11 very shortly. We are grateful for the support and partnership of our new and existing lenders who share our confidence in a bright future for Almatis.”
Remco de Jong, chairman of Almatis, adds: “We look forward to working closely with DIC and their partners to drive growth and value creation for the business, based on product innovations and new capacity, primarily in Asia.”
