Metallurg makes $5.5 million interest payment before grace period expires

By Jeff Pines

Washington, June 18 - Metallurg, Inc. made the $5.5 million interest payment on its 11% senior notes due 2007 before the 30-day grace period expired.

The payment was due June 1. Metallurg also paid $31,167 in interest accrued since June 1, it said in a Friday filing with the Securities and Exchange Commission.

The New York-based specialty metals company has $100 million outstanding of the notes.

Metallurg is in negotiations with potential lenders who might be willing to refinance its revolver with Fleet National Bank. Management said refinancing and restructuring is critical to the company's long-term health in a recent SEC filing.

Without a restructuring, and even with one, the companies may be forced into Chapter 11, Metallurg's parent, Metallurg Holdings, Inc., said in that filing.

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