Lenders resist TPG's DIP offer, reports Financial Times

Conflict of interests has mired Texas Pacific Group's offer to provide part of the debtor-in-possession financing for Aleris International, says the Financial Times.

Aleris is one of TPG's many investments. The private equity firm contributing to the DIP means that it may be able to recover its investments in Aleris.

Aleris International filed for chapter 11 bankruptcy on 12 February at the US bankruptcy court for the district of Delaware. Its $1.075 billion of DIP financing was to be provided by lenders led by Apollo and Oaktree, according to the filings. According to the FT, lenders are currently opposing TPG's proposition, and the court is scheduled to make a decision this month.