Aleris International is a producer of aluminum rolled and extruded products, recycled aluminum, and specification aluminum alloy manufacturing. It headquarters are in Beachwood, Ohio, a suburb of Cleveland, and it has access to 40 production facilities across the world.[1]
Aleris was formed in 2004 through the merger of Commonwealth Industries, Inc. and IMCO Recycling Inc.[1]
In February 2009, the US Justice Department filed suit against Aleris alleging that 15 of its plants had violated the Clean Air Act by emission of pollutants. In August 2009, Aleris settled the suit with the government, and agreed to pay a $4.6 million fine and spend an additional $4.2 million on new pollution controls at its plants.[2][3]
Aleris filed for Chapter 11 bankruptcy on 12 February 2009.[4] It announced plans in May 2010 to exit bankruptcy as a privately-held company owned by investment funds of Apollo Management, Oaktree Capital Management, and Sankaty Advisors.
Aleris International, Inc engages in the production of aluminum rolled and extruded products. It also engages in aluminum recycling, and production of specification alloys. The company operates two segments, Global Rolled and Extruded Products, and Global Recycling. The Global Rolled and Extruded Products segment produces rolled aluminum products; and remelts primary ingots, internal scrap, purchased scrap, and master alloys to produce rolled aluminum sheet & plate products, such as aluminum sheet, plate, and fabricated products for use in the aerospace and transportation, distribution, engineering, construction, and packaging industry segments; and develops specialties, such as heat-treated, and extra wide sheet for the aerospace & automotive sectors. It also produces soft and hard alloy extruded aluminum profiles in industrial extrusions, building systems, and rail and transport projects for building and construction and transportation sectors, light gauge sheet and heavy foil for use in consumer packaging sector. The Global Recycling segment recycles aluminum; manufactures specification alloys serving customers in North America, Europe, and South America, as well as recycles magnesium scrap and delivers products to various automotive companies. It primarily converts aluminum scrap, dross, and alloying agents; and delivers the recycled metal and specification alloys in molten or ingot form to other aluminum producers and manufacturers in the automotive industry. The company was formerly known as IMCO Recycling Inc. and changed its name to Aleris International, Inc. in December, 2004. The company was founded in 1985 and is based in Beachwood, Ohio.
Aleris International Inc, a maker of rolled aluminum products, proposed a reorganization plan on Friday that would leave the company in the hands of the investment funds that financed its bankruptcy, according to court documents.
The funds, affiliates of Oaktree Capital Management, Apollo Management and Sankaty Advisors, would backstop a sale of shares and debt in the reorganized company worth up to $690 million.
Holders of U.S. and European term loans would have the option to receive cash or equity in the company and the chance to participate in the rights offering of securities.
That money would be used to pay off its creditors as well as finance its operations after bankruptcy. The plan proposes wiping $2.5 billion from the company's balance sheet, including providing just $4 million for $1.196 billion in unsecured bond debt.
The three funds were among the providers of the company's debtor-in-possession, or DIP, loan.
Aleris filed for bankruptcy in February 2009, and tight credit markets forced it put together a "roll-up" DIP loan which encouraged those with secured claims to provide fresh money.
There were two portions to the DIP loan, a term loan of fresh money and a revolving credit facility.
Lenders who participated in the $500 million term loan were allowed to roll their pre-petition claims into a $575 million revolving credit facility.
That allowed them to accelerate the priority of those pre-petition loans, ensuring they would be repaid before lenders and creditors who did not partake in the roll-up.
Aleris has been hard-hit by the sharp drop in demand for cars.
The company must put its plan to a vote of creditors and receive approval of a bankruptcy judge before it can exit Chapter 11. It expects to emerge in the first half of the year.
Rolled Products North America. Aleris’s Rolled Products North America (RPNA) segment produces rolled products for a wide variety of applications, including building and construction, distribution, transportation and other uses in consumer durables general industrial segments. Except for depot sales, which are for standard size products, substantially all of the rolled aluminum products in the United States are manufactured to specific customer requirements, using direct-chill and continuous ingot cast technologies that allow Aleris to use and offer a variety of alloys and products for a number of end uses.
Recycling and Specification Alloys Americas. Aleris’s Recycling and Specification Alloy Americas (RSAA) segment includes aluminum melting, processing and recycling activities, as well as its specification alloys manufacturing business. The segment’s recycling operations convert scrap and dross (a byproduct of melting aluminum) and combine these materials with other alloy agents as needed to produce recycled metal generally for participants in the metal industry serving end-uses related to consumer packaging, transportation and construction. Historically, a significant percentage of these products are sold through “tolling” arrangements, in which Aleris converts customer-owned scrap and dross and returns the recycled metal in ingot or molten form to its customers for a fee.
The segment’s specification alloy operations combine various aluminum scrap types with hardeners and other additives to produce alloys and chemical compositions with specific properties (including increased strength, formability and wear resistance) as specified by customers for their particular applications. The specification alloy operations typically deliver its recycled and specification alloy products to customers in molten or ingot form.
Europe. Aleris’s Europe segment is comprised of the rolled and extruded products and recycling operations in Europe, Wales and a single extrusion facility in China. The Europe segment produces rolled products for a wide variety of technically sophisticated applications, including aerospace plate and sheet, brazing sheet, automotive sheet, and other uses in the engineering, construction, transportation, and packaging industry segments. Substantially all of the Company’s rolled aluminum products in Europe are manufactured to specific customer requirements, using direct-chill ingot cast technologies that allow the Company to use and offer a variety of alloys and products for a number of technically demanding end uses.
The Europe segment also produces extruded aluminum products targeted towards the transportation, electrical, mechanical engineering, and building and construction sectors. With one of the largest extrusion presses in the world, the Company produces high-end, value-added, large-profile extruded products. The Company further serves its customers by performing value-added fabrication on most of its extruded products. The Company’s extruded products are used for, among other things, urban transport systems, automotive parts, aircraft and windowsills, roofing, window systems and balconies.
The Europe segment also includes certain aluminum melting, processing and recycling activities. These recycling operations convert scrap and dross (a byproduct of melting aluminum) and combine these materials with other alloy agents as needed to produce recycled metal and specification alloys. The operations also recycle magnesium scrap. Historically, a significant percentage of these products are sold through “tolling” arrangements, in which the Company converts customer-owned scrap and dross and returns the recycled metal to its customers for a fee.
118 Commerce Drive
PO Box 61
Roxboro, NC 27573
Aleris was formed in 2004 through the merger of Commonwealth Industries, Inc. and IMCO Recycling Inc.[1]
In February 2009, the US Justice Department filed suit against Aleris alleging that 15 of its plants had violated the Clean Air Act by emission of pollutants. In August 2009, Aleris settled the suit with the government, and agreed to pay a $4.6 million fine and spend an additional $4.2 million on new pollution controls at its plants.[2][3]
Aleris filed for Chapter 11 bankruptcy on 12 February 2009.[4] It announced plans in May 2010 to exit bankruptcy as a privately-held company owned by investment funds of Apollo Management, Oaktree Capital Management, and Sankaty Advisors.
Aleris International, Inc engages in the production of aluminum rolled and extruded products. It also engages in aluminum recycling, and production of specification alloys. The company operates two segments, Global Rolled and Extruded Products, and Global Recycling. The Global Rolled and Extruded Products segment produces rolled aluminum products; and remelts primary ingots, internal scrap, purchased scrap, and master alloys to produce rolled aluminum sheet & plate products, such as aluminum sheet, plate, and fabricated products for use in the aerospace and transportation, distribution, engineering, construction, and packaging industry segments; and develops specialties, such as heat-treated, and extra wide sheet for the aerospace & automotive sectors. It also produces soft and hard alloy extruded aluminum profiles in industrial extrusions, building systems, and rail and transport projects for building and construction and transportation sectors, light gauge sheet and heavy foil for use in consumer packaging sector. The Global Recycling segment recycles aluminum; manufactures specification alloys serving customers in North America, Europe, and South America, as well as recycles magnesium scrap and delivers products to various automotive companies. It primarily converts aluminum scrap, dross, and alloying agents; and delivers the recycled metal and specification alloys in molten or ingot form to other aluminum producers and manufacturers in the automotive industry. The company was formerly known as IMCO Recycling Inc. and changed its name to Aleris International, Inc. in December, 2004. The company was founded in 1985 and is based in Beachwood, Ohio.
Aleris International Inc, a maker of rolled aluminum products, proposed a reorganization plan on Friday that would leave the company in the hands of the investment funds that financed its bankruptcy, according to court documents.
The funds, affiliates of Oaktree Capital Management, Apollo Management and Sankaty Advisors, would backstop a sale of shares and debt in the reorganized company worth up to $690 million.
Holders of U.S. and European term loans would have the option to receive cash or equity in the company and the chance to participate in the rights offering of securities.
That money would be used to pay off its creditors as well as finance its operations after bankruptcy. The plan proposes wiping $2.5 billion from the company's balance sheet, including providing just $4 million for $1.196 billion in unsecured bond debt.
The three funds were among the providers of the company's debtor-in-possession, or DIP, loan.
Aleris filed for bankruptcy in February 2009, and tight credit markets forced it put together a "roll-up" DIP loan which encouraged those with secured claims to provide fresh money.
There were two portions to the DIP loan, a term loan of fresh money and a revolving credit facility.
Lenders who participated in the $500 million term loan were allowed to roll their pre-petition claims into a $575 million revolving credit facility.
That allowed them to accelerate the priority of those pre-petition loans, ensuring they would be repaid before lenders and creditors who did not partake in the roll-up.
Aleris has been hard-hit by the sharp drop in demand for cars.
The company must put its plan to a vote of creditors and receive approval of a bankruptcy judge before it can exit Chapter 11. It expects to emerge in the first half of the year.
Rolled Products North America. Aleris’s Rolled Products North America (RPNA) segment produces rolled products for a wide variety of applications, including building and construction, distribution, transportation and other uses in consumer durables general industrial segments. Except for depot sales, which are for standard size products, substantially all of the rolled aluminum products in the United States are manufactured to specific customer requirements, using direct-chill and continuous ingot cast technologies that allow Aleris to use and offer a variety of alloys and products for a number of end uses.
Recycling and Specification Alloys Americas. Aleris’s Recycling and Specification Alloy Americas (RSAA) segment includes aluminum melting, processing and recycling activities, as well as its specification alloys manufacturing business. The segment’s recycling operations convert scrap and dross (a byproduct of melting aluminum) and combine these materials with other alloy agents as needed to produce recycled metal generally for participants in the metal industry serving end-uses related to consumer packaging, transportation and construction. Historically, a significant percentage of these products are sold through “tolling” arrangements, in which Aleris converts customer-owned scrap and dross and returns the recycled metal in ingot or molten form to its customers for a fee.
The segment’s specification alloy operations combine various aluminum scrap types with hardeners and other additives to produce alloys and chemical compositions with specific properties (including increased strength, formability and wear resistance) as specified by customers for their particular applications. The specification alloy operations typically deliver its recycled and specification alloy products to customers in molten or ingot form.
Europe. Aleris’s Europe segment is comprised of the rolled and extruded products and recycling operations in Europe, Wales and a single extrusion facility in China. The Europe segment produces rolled products for a wide variety of technically sophisticated applications, including aerospace plate and sheet, brazing sheet, automotive sheet, and other uses in the engineering, construction, transportation, and packaging industry segments. Substantially all of the Company’s rolled aluminum products in Europe are manufactured to specific customer requirements, using direct-chill ingot cast technologies that allow the Company to use and offer a variety of alloys and products for a number of technically demanding end uses.
The Europe segment also produces extruded aluminum products targeted towards the transportation, electrical, mechanical engineering, and building and construction sectors. With one of the largest extrusion presses in the world, the Company produces high-end, value-added, large-profile extruded products. The Company further serves its customers by performing value-added fabrication on most of its extruded products. The Company’s extruded products are used for, among other things, urban transport systems, automotive parts, aircraft and windowsills, roofing, window systems and balconies.
The Europe segment also includes certain aluminum melting, processing and recycling activities. These recycling operations convert scrap and dross (a byproduct of melting aluminum) and combine these materials with other alloy agents as needed to produce recycled metal and specification alloys. The operations also recycle magnesium scrap. Historically, a significant percentage of these products are sold through “tolling” arrangements, in which the Company converts customer-owned scrap and dross and returns the recycled metal to its customers for a fee.
118 Commerce Drive
PO Box 61
Roxboro, NC 27573
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