TPG Hasn’t Asked Judge To Join Aleris DIP Group – Reuters

U.S. private equity firm TPG [TPG.UL] has expressed interest in providing debtor-in-possession (DIP) financing for Aleris International Inc, a company it bought in 2006, a source familiar with the situation told Reuters.

The private equity firm wasn’t able to participate in an original round of DIP financing because of technical reasons, but expressed interest in the secondary DIP, the source said.

Aleris, a maker of aluminium products, filed for Chapter 11 bankruptcy protection last month.

The Financial Times reported earlier that TPG asked the judge in the Aleris bankruptcy case to allow it to join a group offering the DIP facility. The source that spoke to Reuters, however, said that TPG had not asked the court or judge to intercede.

DIP financing is typically the first claim repaid in a bankruptcy and allows the provider of the financing to play a larger role in directing the outcome of the case.

TPG, through affiliate Aurora Acquisition Holdings, bought Aleris for about $1.7 billion, plus the assumption of about $1.6 billion in debt. (Reporting by Megan Davies, Emily Chasan in New York and Ajay Kamalakaran in Bangalore; editing by Jeffrey Benkoe)