Ceramic Industry

Almatis Group Enters Plan Support Agreement

August 20, 2010

The Almatis Group announced it has received authority to enter into a Plan Support Agreement with Dubai International Capital (DIC) and certain holders of the second lien, mezzanine and junior mezzanine debt of the Almatis Group. The agreement paves the way for the Almatis Group to withdraw its currently pending pre-packaged plan and file the new plan, a DIC-led fully committed refinancing, in the reorganization cases under Chapter 11 of the U.S. Bankruptcy Code. In addition, the group will file a disclosure statement related to the new plan.

The new plan is supported by DIC, Almatis Group’s largest shareholder and requisite holders of the group’s second lien, mezzanine and junior mezzanine debt. Following a settlement also announced by the Almatis Group, Oaktree Capital Management (the largest single holder of the group’s senior debt) has agreed to support the new plan; the settlement with Oaktree is subject to the approval of the bankruptcy court.

The DIC-led refinancing provides for the full repayment of the group’s senior first lien debt, and also proposes significantly enhanced distributions to the junior creditors of the group. Funding for the new plan will come from a $100 million equity contribution that DIC has already escrowed for this purpose with JP Morgan, and from approximately $600 million of debt financing to be provided by a consortium of JP Morgan, Bank of America Merrill, GSO Capital Partners, GoldenTree Asset Management and Sankaty Credit Opportunities IV.

The hearing to consider approval of the Disclosure Statement related to the new plan, as well as the settlement with Oaktree Capital Management, is scheduled for August 23. Almatis reports that it anticipates the confirmation of the new plan of reorganization in late September.

While the new plan is being considered by the court, the court continues to allow the group to operate in the ordinary course of business led by the current management team.

For additional details, visit www.Almatis.com.