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KKR to invest in CMA Corporation Ltd

Kohlberg Kravis Roberts & Co, through investment funds and accounts managed by KKR Asset Management LLC (KAM) will make an investment in Australian recycling group, CMA Corporation Ltd (CMA).

CMA has been in voluntary suspension since February 2010 and the company has been undertaking a capital structure review. CMA and KAM have been in discussions since December. KAM, on behalf of its funds and accounts, made its first investment in the company in March 2011 when through a secondary purchase, it became the largest holder of the company’s Syndicated Facility Agreement.

This new investment is part of a restructuring proposal announced by CMA and is subject to approval by CMA’s shareholders. If approved, the restructuring would position CMA for renewed growth and enable the Company to recommence trading on the Australian Stock Exchange (ASX). Further details of the proposal can be found in CMA’s announcement released to the ASX today.

"We see great potential in CMA and are excited by the prospect of assisting in enhancing the Company’s capital structure. Working with management, we intend to grow the business over the long term. The recapitalisation will allow CMA to move forward with greater financial certainty, improve the recycling operations of the company and provide greater security for the company’s employees,” says Jamie Weinstein, Co-head of KKR’s Special Situations group.

CMA provides products and services to customers across Australia, Asia, New Zealand and North America and employs more than 450 people. The company’s major activities are the processing and recycling of predominantly secondary ferrous and non-ferrous metal products. CMA employs a variety of advanced high-end recycling technologies to add value to its end customers.

The restructuring, if approved by shareholders, will see KAM on behalf of its funds and accounts, provide support to CMA in the form of an equity commitment, a commitment of capital to newly issued subordinated debt and through improved access to new credit facilities.

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