Ceramic Industry

Almatis Group Completes Financial Restructuring, Emerges from Chapter 11

October 14, 2010

The Almatis Group recently announced that its plan of reorganization, which was confirmed by the U.S. Bankruptcy Court for the Southern District of New York on September 20, have become effective, thus allowing Almatis to complete its financial restructuring and emerge from Chapter 11.

“Today’s successful emergence from Chapter 11 after just five months allows us to turn our full attention to the growth and development of business again,” said Remco de Jong, CEO. “As we have said before, we are emerging from Chapter 11 as a stronger company with significantly reduced debt and a strongly operating business. With this stronger financial footing and the support of DIC, who continues to be our majority shareholder, we are able to invest and pursue growth opportunities for the business.”

In line with the plan, the existing senior debt was repaid in full. In addition, the junior lenders to Almatis will receive new PIK Notes and a 40% equity stake in the Almatis Group in exchange for its old claims. In exchange for a new $100 million equity investment, DIC will retain a 60% equity stake in the Almatis Group. Financing for the distributions under the plan was provided from the new DIC equity investment and from approximately $565 million in new debt underwritten by GSO Capital Partners, Sankaty Credit Opportunities IV, and GoldenTree Asset Management. An additional $50 million revolving credit facility was provided by Bank of America, Merrill Lynch International and several units of JP Morgan Chase.

Visit www.almatis.com for additional details.