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.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/04/SMU_BL_headshot-V4-150x150.png)
Brett Linton
Read more from Brett LintonLatest in Economy
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/construction.png)
US construction spending slips in July
Construction spending in the US in July was slightly lower than June. Despite the decline, it increased notably year on year (y/y).
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/FedRes.png)
Beige Book: Economic growth hit by tighter consumer spending
Growth in the US economy continues to struggle in most districts. The Federal Reserve’s Beige Book report for August shows two-thirds of reporting districts flat or declining economic activity.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/economy.jpg)
Steel Summit 2024: Dr. Basu predicts near-term weakness in US economy
“The US economy, despite some near-term weakness I suggest in early 2025, is going to be strong," Dr. Anirban Basu said this week.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/2023_News_Img/7.Jul-23/Chicago-skyline-summer-2022v2.jpg)
Chicago Business Barometer ticked up in August, remains low
The Chicago Business Barometer edged up in August but remains in contraction territory, according to the latest release from Market News International (MNI) and the Institute for Supply Management (ISM).
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/construction2.png)
ABI remains soft despite July gains
The July AIA ABI score has recovered nearly six points over the last two months following the near four-year low recorded in May