Almatis Group Completes Financial Restructuring and Emerges From Chapter 11

FRANKFURT, Germany, Sept. 30 /PRNewswire/ -- The Almatis Group today announced that its plan of reorganization (the "Plan"), which was confirmed by the United States Bankruptcy Court for the Southern District of New York on September 20, 2010, became effective today allowing Almatis to complete its financial restructuring and emerge from Chapter 11.

"Today's successful emergence from Chapter 11 after just five months allows us to turn our full attention to the growth and development of business again," stated Remco de Jong, CEO of Almatis. "As we have said before, we are emerging from Chapter 11 as a stronger company with significantly reduced debt and a strongly operating business. With this stronger financial footing and the support of DIC, who continues to be our majority shareholder, we are able to invest and pursue growth opportunities for the business."

Remco de Jong added: "We would also like to thank our customers, suppliers, business partners, lenders and employees for their support throughout this process. The commitment of our stakeholders was instrumental in effectuating the necessary financial restructuring."

Pursuant to the Plan, the existing senior debt was repaid in full. In addition, the junior lenders to Almatis will receive new PIK Notes and a 40% equity stake in the Almatis Group in exchange for their old claims. In exchange for a new $100 million equity investment, DIC will retain a 60% equity stake in the Almatis Group. Financing for the distributions under the Plan was provided from the new DIC equity investment and from approximately $565 million in new debt underwritten by GSO Capital Partners, Sankaty Credit Opportunities IV, and GoldenTree Asset Management.  An additional $50 million revolving credit facility is provided by Bank of America, Merrill Lynch International and several units of JP Morgan Chase.  As a result of the occurrence of the effective date of the Plan, Almatis will also pay in full all outstanding prepetition claims of trade vendors expeditiously.

About Almatis

Almatis is a global leader in the development, manufacture and supply of premium specialty alumina products. With nearly 900 employees worldwide, the Company's products are used in a wide variety of industries, including steel production, cement production, non-ferrous metal production, plastics, paper, ceramics, carpet manufacturing and electronic industries. Almatis operates nine production facilities worldwide and serves customers around the world. Until 2004, the business was known as the chemical business of Alcoa.

SOURCE Almatis