LONDON (Reuters) – Privately-owned German alumina products manufacturer Almatis has secured a standstill as negotiations to restructure the group’s debt continue, three sources with knowledge of the situation said on Thursday.
The standstill period – under which creditors agree not to take action against the company – extends until the middle of August, according to two of the sources.
The standstill gives lenders additional time to secure a restructuring deal, one source said.
A spokesperson for Almatis declined to comment.
Almatis was acquired by Dubai International Capital (DIC) in 2007, backed with a $970 million loan arranged by UBS and Arab Banking Corporation.
Bids on Almatis’s senior debt improved after the standstill was agreed, Thomson Reuters LPC data shows. Indicative average bids on Almatis’s euro-denominated term loan B tranche were at 38.9 percent of face value, up from 37.7 percent a week ago, while the euro second lien bid was unchanged at 4 percent on average, according to the data. (Reporting by Zaida Espana and Tom Freke; Editing by Greg Mahlich)