Baker McKenzie advises Gulf Aluminium Rolling Mill on its debt restructuring

Baker McKenzie advised Gulf Aluminium Rolling Mill (GARMCO), one of the largest downstream aluminium companies in the Middle East (headquartered in Bahrain) on its debt restructuring to creditors pursuant to the reorganisation plan approved by the courts of the Kingdom of Bahrain. The consortium of creditors included Ahli United Bank, National Bank of Bahrain, Mashreq Bank, Arab Bank, Standard Chartered Bank and Aluminium Bahrain (the Creditors).

The approved Reorganisation Plan covers USD268 million of outstanding debt through a mix of debt equity swap, interest free debt, interest bearing debt and subordinated debt. Baker McKenzie have advised on all legal aspects of the interest free debt and the interest bearing debt agreements, equivalent to approximately USD185 million. GARMCO team was led by Mohamed Rafea, chief executive officer, with the support from Shahbaz Hussain, executive manager finance and Amit Kekre, group general counsel.

The team at Baker McKenzie Bahrain was led by partner Fatima Alhasan with support from associate Noor Alhashili. Fatima Alhasan commented, “We are delighted to have represented GARMCO in the implementation of this strategically important financial restructuring mandate, that endeavors to secure a stable future for the company. This is the first ever sizeable financial restructuring being implemented under the auspices of Bahraini courts after the passing of the new bankruptcy law in Bahrain and this representation is testament to our proven track record of success in complex debt restructuring and insolvency mandates in the region.

Up to June 2023, GARMCO has made a total repayment of USD33.5 million to the Creditors.