Economy
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.
{loadposition reserved_message}
“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
Read more from Brett LintonLatest in Economy

Steel Summit: ITR economist urges execs to prepare for growth, not recession
If the steel industry professionals who made it to the very final presentation of this year’s SMU Steel Summit were expecting another round of cautious forecasting, they were in for a surprise. Because what they got was a wake-up call.

ISM: Manufacturing growth remained down in August
US manufacturing activity remained muted in August despite a marginal gain from July's recent low, according to supply executives contributing to the Institute for Supply Management (ISM)’s latest report.

Steel Summit: Dr. Basu blames tariffs for riskier path ahead
Steel executives packed the main conference hall of the 2025 SMU Steel Summit on Tuesday, Aug. 26, to hear economist Dr. Anirban Basu lay out his blunt view of tariffs, inflation, and demand.

Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.

US housing starts gain momentum in July
US housing starts rose in July both month-on-month and year-on-year, according to figures from the US Census Bureau.