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Friday, 30 April 2010

UPDATE 3-Almatis files for bankruptcy, rejects DIC proposal | Reuters

Debt-laden German aluminium firm Almatis B.V. filed for Chapter 11 protection in a U.S. bankruptcy court, two days after its owner Dubai International Capital [DUBAHP.UL] (DIC) urged the company's lenders not to rush into bankruptcy.

Almatis, which has rejected DIC's earlier refinancing proposal, said the primary aim of the bankruptcy plan is to reduce the debt load, implement a workable capital and corporate governance structure.

In an emailed response, DIC said it will vigorously dispute the reorganization plan and the valuation put forward by Almatis' management in court. DIC said the company's Chapter 11 filing was "extraordinary and inexplicable."

Cool reception seen for Dubai World offer | Reuters

Cool reception seen for Dubai World offer | Reuters

The state-owned conglomerate's offer is for a 1 percent interest rate and 1 percent payment-in-kind, a source familiar with the matter said, an upgrade from an opening 1 percent interest rate offer which was rejected as being too low.

A Dubai government spokeswoman said there was no change to the initial terms, which called for a cash interest payment as well as a payment-in-kind but did not outline the interest rates offered.

"The government has not presented a revised offer or improved terms, there has been no change to the original proposal," she said.