Economy
April 21, 2017
Optima Specialty Steel, Inc. Announces Plan Support Agreement
Written by Brett Linton
Miami – April 20, 2017 – Optima Specialty Steel, Inc. (together with its subsidiaries, collectively the “Company” or “OSS”) today announced that it has entered into a Plan Support Agreement (the “Agreement”) with Optima Acquisitions, LLC (“OA”), the sole shareholder of OSS. 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. The debt financing process will be conducted by Miller Buckfire, the Company’s investment banker, on a timeline consistent with the planned emergence from Chapter 11. The proposed plan will also reduce the Company’s long-term debt, significantly deleverage its balance sheet, and position the Company for sustainable profitability and allow it to strategically position itself for future opportunities.
