Private equity fund Dubai International Capital (DIC) said it would continue to seek a refinancing of the debt of German aluminium firm Almatis despite an adverse Dutch court decision. In a statement, DIC said: "The decision by the Enterprise Chamber of the Amsterdam Court of Appeal not to grant an injunction does not affect DIC's ability or intention to pursue a refinancing of Almatis."
The court denied a DIC petition asking for more time for a refinancing plan, media reports said.
A refinancing would prevent distressed debt investor Oaktree Capital from filing a US Chapter 11 bankruptcy for Almatis in a bid to take over the German company which is weighed down by an estimated debt of about $1 billion.
DIC, the investment arm of Dubai's ruler, said: "Such a refinancing could form the basis of an alternative plan of reorganisation in the event US Chapter 11 proceedings are commenced by Almatis."
It added: "We will continue to pursue a restructuring of the Almatis Group which more accurately and fairly reflects the true value of the business, and if Almatis commences proceedings under Chapter 11 in the United States, we expect that the reorganisation plan currently contemplated by Almatis and Oaktree will be strongly contested."
Almatis, acquired by DIC via a leveraged buyout in 2007, has operations in Europe and the United States. (Reuters)