Aleris International, based in Beachwood, Ohio, has announced that it has filed a proposed Plan of Reorganization and a related draft disclosure statement in U.S. Bankruptcy Court in Delaware. With the filing, Aleris and its wholly owned U.S. subsidiaries co-debtors are positioned to emerge from chapter 11 protection by the middle of this year, according to a press release issued by the company.
"The filing of the Plan of Reorganization with this level of creditor support represents a major milestone in our ongoing efforts to position Aleris to emerge from chapter 11 with financial stability and an operationally sound and competitive foundation for the long term," says Steven Demetriou, Aleris chairman and CEO. "Since our filing last February, we have made significant improvements to our operations worldwide, reducing overhead, manufacturing costs and global headcount, as well as achieving significant productivity and customer service improvements.
“When Aleris emerges from chapter 11, we will have eliminated all of our term loan and unsecured debt and will have a strong balance sheet, significantly reduced operating costs and greater financial flexibility. The strong financial support and equity ownership commitment from the Backstop Parties demonstrate confidence in Aleris's future,” Demetriou says.
He continues, "As the economy recovers, and as our customers' businesses improve, we will be well-positioned to resume a path of growth and continue to build Aleris into a global aluminum enterprise for the long-term benefit of our customers, suppliers, business partners and employees. We greatly appreciate the continued support and hard work of our employees around the world during this restructuring process. Because of their commitment to the business, we have fully satisfied the needs of our existing customers without interruption while establishing relationships with new ones."
The bankruptcy court has set the hearing to consider approval of the Disclosure Statement for March 12.
To facilitate the global restructuring of all of the debt on Aleris's balance sheet, the company also has filed a voluntary petition for relief under chapter 11 as well as a Plan of Reorganization for its German holding company subsidiary, Aleris Deutschland Holding GmbH.
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