Almatis cleared to exit bankruptcy in coming weeks

（Reuters） - European aluminum maker Almatis Holdings BV [ALMTI.UL] said on Monday it received court approval for its reorganization, clearing the way to exit bankruptcy under the control of Dubai International Capital LLC [DUBAHP.UL].

The reorganization caps months of battling over Almatis between Dubai International Capital, or DIC, and Oaktree Capital Management LP, which invests in ailing companies.

DIC will invest $100 million in Almatis and it lined up new secured loans. That financing will go to paying off Oaktree and other senior lenders in full.

Junior lenders will end up swapping their debts for 40 percent of the company.

Almatis filed for bankruptcy earlier this year with more than $1 billion in debt, which stemmed from a 2007 leveraged buyout by DIC.

Originally the company planned to turn over control of the company to senior lenders, led by Oaktree.

In July, DIC came up with the current plan which paid off Oaktree and other senior lenders in full and provided a better recovery to junior lenders.

Almatis said in a statement it expected to exit bankruptcy by the middle of October.