GERMANY - Oaktree to challenge DIC for Almatis

Oaktree, which claims to have acquired as much as a third of the company's debt, is believed to be preparing a proposal to present to the company and its fellow creditors, which would see much of the $1bn debt written off in exchange for a majority stake in the business.

The move comes just a week after DIC, which is owned by the Dubai government's beleaguered holding entity Dubai Holding, put forward its own restructuring proposal, which would have seen the investor inject an additional $50m and retain a 60% interest, while junior lenders took the remaining 40% stake. The plan is reportedly being blocked by Oaktree.

Just a few months ago, Oaktree and DIC were said to be working together on a financial restructuring proposal for the company, though talks were ended by DIC when Almatis' economic situation stabilised.

DIC acquired Almatis in 2007 in a $1.2bn buyout from Rhône Capital and Teachers' Private Capital.

The Frankfurt-based company researches, develops and produces specialty alumina materials used in industrial manufacturing processes such as steel refractories, ceramics and flame retardants. Almatis employs 900 staff.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Restructuring
• DACH