NEW YORK, Aug 9 (Reuters) - Bankrupt aluminum maker Almatis BV has reached a settlement agreement with dissident lender Oaktree Capital Management, paving the way for the German company to emerge from bankruptcy, according to court documents.
Oaktree had earlier opposed Dubai International Capital LLC's plan to retain control over Almatis, but gave up its fight in return for full payment of its senior lender claims and as much as $5.25 million for reimbursement of its fees and expenses.
The deal requires approval of a U.S. Bankrupcy Court judge.
'The settlement removes potential obstacles to quick confirmation and consummation of the amended plan, and saves the debtors the delay, cost, and expense of litigation with Oaktree over the various disputed issues,' Almatis wrote in court documents dated Friday.
Almatis called Oaktree the 'last possible source of significant resistance to confirmation of the amended plan.'
The settlement, if approved, clears the way for Dubai International, which had bought Almatis in 2007, to retain 60 percent of the company. Junior creditors would own 40 percent.
The case is In re: Almatis B.V., U.S. Bankruptcy Court, Southern District of New York, No. 10-12308.
(Reporting by Chelsea Emery; Editing by Lisa Von Ahn) Keywords: ALMATIS/OAKTREE (chelsea.emery@thomsonreuters.com; +1 646 223 6115; Reuters Messaging: chelsea.emery.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Oaktree had earlier opposed Dubai International Capital LLC's plan to retain control over Almatis, but gave up its fight in return for full payment of its senior lender claims and as much as $5.25 million for reimbursement of its fees and expenses.
The deal requires approval of a U.S. Bankrupcy Court judge.
'The settlement removes potential obstacles to quick confirmation and consummation of the amended plan, and saves the debtors the delay, cost, and expense of litigation with Oaktree over the various disputed issues,' Almatis wrote in court documents dated Friday.
Almatis called Oaktree the 'last possible source of significant resistance to confirmation of the amended plan.'
The settlement, if approved, clears the way for Dubai International, which had bought Almatis in 2007, to retain 60 percent of the company. Junior creditors would own 40 percent.
The case is In re: Almatis B.V., U.S. Bankruptcy Court, Southern District of New York, No. 10-12308.
(Reporting by Chelsea Emery; Editing by Lisa Von Ahn) Keywords: ALMATIS/OAKTREE (chelsea.emery@thomsonreuters.com; +1 646 223 6115; Reuters Messaging: chelsea.emery.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2010 AFX News
