Monday, 30 November 2009

US vulture fund circles over DIC's alumina producer

Dubai International Capital faces a tough battle to keep control of Almatis, the world's biggest alumina producer, as Oaktree Capital, the US vulture fund, prepares a proposal to acquire the company by restructuring its $1bn debts.

The move is a blow for DIC, the international investment vehicle controlled by Dubai's ruler, Sheikh Mohammed Bin Rashid al-Maktoum . It also comes as Dubai faces questions about its strategy as a result of the emirate's debt crisis .

Oaktree, one of the world's biggest distressed- debt investors, is this week expected to present a proposal to Almatis and its creditors that would write off much of its debt. Control of the German alumina producer would pass to the US vulture fund.

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