Optima Specialty Steel, Inc. Announces Initial Plan Support Agreement Milestones Achieved

MIAMI--()--Optima Specialty Steel, Inc. (together with its subsidiaries, collectively the “Company” or “OSS”) today announced that it has filed with the United States Bankruptcy Court for the District of Delaware (the “Court”), the proposed plan of reorganization and disclosure statement as required by its Plan Support Agreement (the “Agreement”) with Optima Acquisitions, LLC (“OA”). In addition, OA has funded $10 million as the first installment of four milestone deposits totaling $25 million towards its required cash contribution.

As previously announced, the Agreement contemplates that the Company will emerge from Chapter 11 by the end of July 2017 through a confirmed plan of reorganization that will pay all allowed claims of creditors in full, in cash. The proposed plan will be funded by a $200 million cash contribution by OA plus debt financing of approximately $140 million.

Hearing dates have been set with the Court to approve the Agreement and the disclosure statement for May 10, 2017 and May 25, 2017, respectively.

“We are pleased that the first milestones have been met by both the Company and Optima Acquisitions. Also, the exit financing process has been launched and is progressing on schedule,” said Michael Correra of Conway MacKenzie, Chief Restructuring Officer of OSS.

Motti Korf, Chief Executive Officer of OSS and a shareholder of OA added, “OA is prepared to make its second milestone deposit of $5 million next week as required by the Agreement. It is important to us that the Company continues to progress quickly on its path to emergence from Chapter 11 and we are pleased with the responses received to date by Miller Buckfire from prospective lending partners.”

For more information about the Plan Support Agreement please visit: http://cases.gardencitygroup.com/oma/index.php

About Optima Specialty Steel, Inc.

Headquartered in Miami, Florida, Optima Specialty Steel, Inc. is one of North America’s leading independent manufacturers of specialty steel products. Operating through its four wholly-owned subsidiaries, Michigan Seamless Tube & Pipe (MST), Niagara LaSalle Corporation, Kentucky Electric Steel and Corey Steel Company, the organization leverages its technical expertise, skilled workforce and sophisticated equipment to produce highly engineered products, including seamless cold drawn pipe and tube, cold finished steel bars and flats and various SBQ and MBQ products.

Contacts

Media:
ICR
John McKenna, 203-682-8200
John.McKenna@icrinc.com

Contacts

Media:
ICR
John McKenna, 203-682-8200
John.McKenna@icrinc.com