Aleris International's Plan of Reorganization Confirmed by Bankruptcy Court

BEACHWOOD, Ohio, May 13 /PRNewswire/ -- Aleris International, Inc. a global leader in aluminum rolled products, extrusions and recycling, announced today that the U.S. Bankruptcy Court in Delaware entered an order confirming the company's Plan of Reorganization (Plan). The Plan received substantial support from key U.S. and European secured creditors as well as unsecured creditors.  With this action, Aleris expects the Plan to become effective and the Company and its wholly-owned co-debtors to emerge from Chapter 11 as a private Company on or around June 1.

Steven J. Demetriou, Aleris Chairman and CEO, said, "We are extremely pleased to receive court approval of our Plan of Reorganization and look forward to exiting Chapter 11 in just a matter of weeks.  We have used the past 15 months and this process to substantially reduce our debt, strengthen our balance sheet, and significantly enhance our competitive profile with new financial flexibility and a streamlined operating structure that preserves all of our businesses while reducing costs.  

"We expect to emerge as a well capitalized downstream aluminum company with excellent liquidity, a committed ownership group, and a robust production platform designed to capitalize on the industrial economic recovery," Mr. Demetriou continued.  "We are driving the Aleris Operating System (AOS) initiative which uses Lean Sigma tools to develop standardized global processes throughout the organization in order to drive quality and value for customers in the markets we serve.  In doing so we will be even better able to satisfy the needs of our customers and to continue building Aleris into a global aluminum Company that will benefit our business partners and employees for years to come.

"I am especially appreciative for all of our hard-working employees around the world who have helped make our restructuring a success and who will be an important part of our future.  I also want to thank the Aleris Board of Directors for their support and counsel during this process. Finally, I am also grateful for the support and confidence that our creditors demonstrated by voting overwhelmingly in favor of the plan and participation in the rights offering and exit financing," Demetriou added.

As previously announced, upon the effective date, Aleris will be a privately held company that will be majority owned by its existing secured creditors led by certain investment funds managed by Oaktree Capital Management, L.P., affiliates of Apollo Management, L.P. and Sankaty Advisors, LLC, respectively.  These entities have committed to invest up to $690 million in the reorganized company in a rights offering  comprised of $45 million in 10 year unsecured Notes and up to $645 million in new equity.  Proceeds from the rights offering will be used to repay outstanding DIP loans and pay fee expenses associated with emergence.  Additionally, the Company has received court approval to enter into a new fully committed $500 million asset based revolving credit facility upon emergence.  

Aleris Deutschland Holding GmbH ("ADH"), a non-operating holding company with no employees or operating assets and that conducts no commercial business, was included as part of the overall Aleris Plan of Reorganization and is also expected to emerge from Chapter 11 on or about June 1.  

About Aleris

Aleris International, Inc. is a global leader in aluminum rolled products and extrusions, aluminum recycling and specification alloy production. Headquartered in Beachwood, Ohio, a suburb of Cleveland, the Company operates over 40 production facilities in North America, Europe, South America and Asia, and employs approximately 6,500 employees. For more information about Aleris, please visit our Website at www.Aleris.com.  

SOURCE Aleris International, Inc.