DIC will try to pull Almatis out of bankruptcy

Oaktree and Dubai have been battling over the best way to refinance German company

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Dubai: Dubai International Capital (DIC) said it will focus on bringing German aluminium maker Almatis out of bankruptcy after a long-running battle with a dissident lender ended.

Oaktree Capital Management LP withdrew its opposition to DIC's plan to retain control of the bankrupt firm after a settlement offer was leaked.

Oaktree and Dubai have been battling over the best way to refinance Almatis, which filed for bankruptcy in the United States with more than $1 billion (Dh3.67 billion) in debt, for the past year.

"We are delighted to have secured a fully committed refinancing of the Almatis Group, ending the uncertainty that the business and its stakeholders have faced over the past 18 months and bringing a positive conclusion to the Chapter 11 process," Anand Krishnan, chief executive officer of DIC, said in a statement.

Refinancing will help bring Almatis out of bankruptcy. DIC will retain 60 per cent and junior creditors owning 40 per cent. Oaktree and other senior lenders will be paid in full.

Refinancing

  • 60% stake DIC will retainin Almatis
  • 40% stake to be held by junior creditors in Almatis

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