Optima Specialty Steel reaches deal that will pay creditors in full

New York, April 20 – Optima Specialty Steel, Inc. announced that it has entered into a plan support agreement with its sole shareholder that will allow the company to exit Chapter 11 by the end of July and pay all allowed claims of its creditors in full in cash.

Under the agreement, the shareholder, Optima Acquisitions, LLC, will make a $200 million cash contribution and provide $140 million of debt financing to the company.

The plan will reduce Optima’s long-term debt, “significantly” deleverage its balance sheet and position the company for “sustainable profitability,” according to a news release.

Miller Buckfire, the company’s investment bank, will conduct the debt financing.

Optima is a Miami-based specialty steel manufacturer. The company filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Dec. 15 under Chapter 11 case number 16-12789.

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