Aleris reorganization plan confirmed by court
ByReuters
- Summary
- To exit Chapter 11 on or around June 1
- Will emerge as a privately held co
- Aleris filed for bankruptcy in Feb, 2009
May 13 (Reuters) - Aleris International Inc [TXPACA.UL] said it received bankruptcy court approval for a reorganization plan that will transfer ownership of the rolled aluminum products maker to certain lenders.
The company, which expects to emerge from Chapter 11 on or around June 1, said it received substantial support from key U.S. and European secured creditors as well as unsecured creditors for the plan.
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Aleris will emerge as a privately held company owned by certain investment funds managed by Oaktree Capital Management LP, affiliates of Apollo Management LP and Sankaty Advisors LLC.
The funds had agreed to backstop a sale of shares and debt in the reorganized company worth up to $690 million and were among the providers of the company's debtor-in-possession, or DIP, loan.
Aleris filed for Chapter 11 bankruptcy in February, 2009, hurt by a sharp drop in demand for cars during the crippling U.S. recession.
The case is In re: Aleris International Inc, U.S. Bankruptcy Court, District of Delaware, No. 09-10478.
Reporting by Santosh Nadgir in Bangalore; Editing by JarshadKakkrakandy
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