UPDATE 1-Oaktree ends fight with Dubai for Almatis
* Dubai International to refinance Almatis
* Settlement announcement expected today
By Tom Hals
WILMINGTON, Del., Aug 3 (Reuters) - Oaktree Capital Management LP withdrew its opposition to Dubai International Capital's plan to retain control over bankrupt aluminum company Almatis BV hours after a "confidential" settlement offer was leaked.
Oaktree notified the court late on Monday it was withdrawing its objections to plans by Dubai International [DUBAHP.UL] that would allow it to retain control of Almatis.
A proposed settlement letter from Oaktree to Almatis, marked "highly confidential," appeared on the public docket earlier Monday as part of filing by junior lenders, followed soon after by a request to withdraw it.
A settlement will be announced this afternoon at a New York court hearing, according to sources. That announcement will likely clear the way for the court to approve a plan proposed by Dubai International in which it will inject $100 million of new equity into the company.
The proposal also raised new secured debt from five debt investors and large banks.
The refinancing plan will clear the way to bring Almatis out of bankruptcy, with Dubai International retaining 60 percent of the company and junior creditors owning 40 percent.
Oaktree and other senior lenders will be paid in full.
Oaktree and Dubai have been battling over the best way to refinance Almatis for the past year.
Almatis filed for bankruptcy earlier this year in the United States with more than $1 billion in debt.
The company had backed a restructuring plan supported by Oaktree, but last week threw its support behind a refinancing plan from Dubai International, the company that bought Almatis in 2007.
The case is In re: Almatis B.V., U.S. Bankruptcy Court, Southern District of New York, No. 10-12308. (Reporting by Tom Hals. Editing by Robert MacMillan, Leslie Gevirtz)
- Exclusive: Radar data suggests missing Malaysia plane deliberately flown way off course - sources
- Investigators focus on foul play behind missing plane: sources |
- Kremlin website hit by 'powerful' cyber attack
- West prepares sanctions as Russia presses on with Crimea takeover |
- UPDATE 1-Rolls-Royce concurs with Malaysia on missing jet's engine data