Oaktree may revise Almatis debt plan after Dubai proposal

Oaktree plans to offer junior lenders of German firm some immediate recovery of their debt.
Oaktree may revise Almatis debt plan after Dubai proposal
DEBT PLAN: Dubai International paid about $1.2 billion for Almatis in 2007, according to a court filing. (Getty Images)
By Bloomberg
Sat 24 Jul 2010 10:14 AM

Oaktree Capital Management, an asset manager battling Dubai International Capital for control of Almatis, plans to revise its debt-restructuring plan for the German alumina-products maker, a person familiar with the situation said.

Oaktree plans to offer junior lenders of Frankfurt-based Almatis some immediate recovery of their debt, compared with its existing proposal where recovery can only be achieved if Almatis is sold for more than $325m, said the person, who declined to be identified because the information is private.

Oaktree, the largest senior lender to Almatis, plans to file the revised plan to the US bankruptcy court next week, the person said.

The Los Angeles-based private-equity firm is amending the restructuring proposal as Dubai International got $535 million of underwritten debt financing that would help fully repay Almatis senior lenders including Oaktree.

A London-based spokeswoman for Oaktree declined to comment.

Dubai International paid about $1.2 billion for Almatis in 2007, according to a court filing. The deal was financed with $970 million of loans underwritten by banks including UBS AG and Bahrain-based Arab Banking Corp, Bloomberg data show. (Bloomberg)

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