Debt-laden German aluminium firm Almatis filed for Chapter 11 protection in a US bankruptcy court, two days after its owner Dubai International Capital (DIC) urged the company's lenders not to rush into bankruptcy.

Almatis, which has rejected DIC's earlier refinancing proposal, said the primary aim of the bankruptcy plan is to reduce the debt load, implement a workable capital and corporate governance structure.

In an emailed response, DIC said it will vigorously dispute the reorganization plan and the valuation put forward by Almatis' management in court. DIC said the company's Chapter 11 filing was 'extraordinary and inexplicable.'

'We fully intend to continue to pursue a refinancing of the Almatis Group which more accurately and fairly reflects the true value of the business and urge Almatis management to reconsider this damaging course of action,' DIC said.

In court filings, Almatis listed estimated assets in the range of $500 million to $1 billion and estimated liabilities of above $1 billion.

As per the restructuring plan, the aggregate bank debt will be reduced to $414.6 million from the current $1.04 billion, the company said in court papers.

Almatis was acquired by DIC through a leveraged buyout and has been in restructuring talks for several months as it seeks to cope with the huge debt load.

DIC's refinancing proposal would have prevented distressed debt investor Oaktree Capital in a bid to take over Almatis. Currently, Oaktree Capital holds about 46 per cent of the company's debt and has a claim of about $310.6 million.

The equity of the reorganized company will be owned by the Senior Lenders, including Oaktree Capital, the filings showed.

In a filing early on Friday, Almatis said DIC's proposal did not amount to a sufficiently credible and viable alternative restructuring option.

In its refinancing proposal, DIC provided no evidence of its financial ability to provide $100 million in new equity or $25 million revolving line of credit has been committed to by the financial institutions, Almatis said.

Almatis also questioned DIC's proposal saying even if funding were available, it was doubtful if the company would have sufficient remaining cash to operate its business and commence necessary capital projects.

On April 28, Dubai International Capital had urged Almatis lenders not to rush to bankruptcy as it seeks a refinancing of its debt.

In a letter to management and senior lenders to Almatis, DIC said a refinancing proposal it was leading was advanced and was a better option than the alternative of filing for Chapter 11.

In its latest filing, Almatis said Oaktree and members of the Senior Coordinating Committee had voted to accept the bankruptcy plan. Also, Almatis said it will negotiate and enter into a debtor-in-possession credit facility.

Almatis, incorporated in the Netherlands, has production facilities in China, Germany, India, Japan, the Netherlands, and the US.-Reuters