Almatis lender stand-off risks debt deal-sources

LONDON, Oct 23 (Reuters) - A battle between lenders to debt-laden German metals processor Almatis has led to a standoff that threatens to derail a $1 billion debt restructuring deal, three sources close to the situation said on Friday.

Without an agreed debt restructuring, the company may need to seek protection from creditors under U.S. Chapter 11 rules, two of the sources said.

Almatis declined to comment. The company has operations in the United States.

The company, acquired by Dubai International Capital [DUBAHP.UL] via a leveraged buyout in 2007, has been in restructuring talks for several months as it seeks to cope with debts of almost $1 billion.

(Reporting by Tom Freke and Zaida Espana; Editing by Douwe Miedema/Marcel Michelson)