Aleris International Receives Court Approval of ‘First Day Motions’

As part of its voluntary filing of petitions for reorganization under Chapter 11 for it and its wholly-owned U.S. subsidiaries, Aleris filed First Day Motions to support its employees and vendors and suppliers, together with its customers and other stakeholders. Among other things, the Court granted approval for the company’s request to continue payment of wages and health and welfare benefits to employees and to pay vendors and suppliers for goods and services provided on or after the filing date of Feb. 12, 2009.

Judge Brendan Shannon of the United States Bankruptcy Court, District of Delaware also granted interim approval for the company to access $150 million of its new $1.075 billion debtor-in possession (DIP) financing, including a new $500 million term loan. The DIP credit facility includes a $575 million revolving credit facility, which replaces the company’s previous revolving credit facility, and will be used for the company’s normal operating and working capital requirements, including employee wages and benefits, supplier payments, and other operating expenses during the during the reorganization process.

A hearing for final approval of the First Day Motions has been scheduled for March 11, 2009. The Company’s First Day Motions were granted, pending, among other things, review by the Creditors’ Committee, which is expected to be formed during the week of Feb. 20, 2009, and subsequent approval by the Court.

Steven J. Demetriou, Aleris chairman and CEO, says, “We are pleased to have received initial approval for our DIP facility and other first-day motions, which will enable us to transition into Chapter 11 with minimal disruption and to maintain normal operations as we move forward.”

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Aleris is a global leader in aluminum rolled products and extrusions, aluminum recycling and specification alloy production. More information is available at www.Aleris.com.