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Optima Specialty Steel, Inc. Announces Plan Support Agreement

Written by Brett Linton

April 21, 2017

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.

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“With the additional $200 million equity commitment provided by OA, the planned reorganization of the Company will provide a strong and sustainable capital structure for OSS and maximize value for all stakeholders”, said Michael Correra, Chief Restructuring Officer of OSS. Motti Korf, Chief Executive Officer of OSS and a shareholder of OA added, “OA is committed to see the Company emerge from Chapter 11 stronger, with enhanced financial flexibility, and poised to capitalize on new opportunities and create value for its stakeholders. I particularly want to thank our employees, customers, vendors, creditors and professional advisers for their continued support throughout this process”.

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.

Brett Linton

Brett Linton is a digital operations analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

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