Tuesday 21 September 2010

Judge Confirms Almatis Plan To Exit Bankruptcy Protection

A bankruptcy judge on Monday confirmed Almatis Group's plan to exit Chapter 11 protection in the hands of its corporate parent, Dubai International Capital, bringing the closely watched five-and-a-half month battle for the Netherlands-based aluminum company closer to resolution.

"I think that the result is a very good one from a standpoint of all creditors," said Judge Martin Glenn of the U.S. Bankruptcy Court in Manhattan, noting that creditors fared "much better" than expected when Almatis first filed for bankruptcy protection on April 30.

Under the restructuring plan, Almatis will emerge from bankruptcy 60% owned by DIC, with junior mezzanine lenders getting 40%. The plan sets aside 10% of the new company's shares for Almatis management.

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