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Optima Specialty Steel files plan; sponsor makes $10 million deposit
By Caroline Salls
Pittsburgh, May 1 – Optima Specialty Steel, Inc. filed with the U.S. Bankruptcy Court for the District of Delaware the proposed plan of reorganization and disclosure statement required by its plan support agreement with Optima Acquisitions, LLC (OA), according to a news release.
According to the disclosure statement, OA is the sole 100% common stock shareholder of debtor Optima.
In addition, OA has funded $10 million as the first installment of four milestone deposits totaling $25 million toward its required cash contribution.
“OA is prepared to make its second milestone deposit of $5 million next week,” Optima chief executive officer Motti Korf said in the release.
“It is important to us that the company continues to progress quickly on its path to emergence from Chapter 11, and we are pleased with the responses received to date by Miller Buckfire from prospective lending partners.”
As previously reported, the agreement calls for Optima to emerge from Chapter 11 by the end of July 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 about $140 million in debt financing.
In exchange for its contribution, OA will retain its existing 100% interest in Optima.
Hearings on approval of the support agreement and the disclosure statement are scheduled for May 10 and May 25, respectively.
“We are pleased that the first milestones have been met by both the company and Optima Acquisitions,” Optima chief restructuring officer Michael Correra said in the release. “Also, the exit financing process has been launched and is progressing on schedule.”
Optima is a Miami-based specialty steel manufacturer. The company filed bankruptcy on Dec. 15 under Chapter 11 case number 16-12789.
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