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Optima Bankruptcy Reorganization Plan Confirmed

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The U.S. Bankruptcy Court issued an order confirming Optima Specialty Steel’s Second Amended Joint Chapter 11 Plan of Reorganization.

The Plan notes, “On the Effective Date, the Unsecured Notes Claims shall be Allowed in the aggregate amount of $87,550,000 as of the Petition Date. Except to the extent that a Holder of an Allowed Class 3-A Claim agrees to a less favorable treatment, in full and final satisfaction, settlement, release, and discharge of and in exchange for each and every Allowed Class 3-A Claim, on or as soon as reasonably practicable after the Effective Date, each Holder of an Allowed Class 3-A Claim shall receive cash in an amount equal to 100% of such Allowed Claim, plus post-Petition Date interest for the period between the Petition Date and the Effective Date, at a rate of 2.25% per annum from the Petition Date through and including July 31, 2017 and at a rate of 3% per annum on and after August 1, 2017, only if each of the Unsecured Noteholders: (i) affirmatively supports in a notice filed with the Bankruptcy Court not less than 3 Business Days prior to the Confirmation Hearing of the Plan and approval of related Debtor motions and (ii) does not (directly or indirectly) advocate for or support any alternative plan or plan process, or any formal or informal opposition, challenge or objection to confirmation of the Plan, or approval of directly related Debtor motions, or hinder or delay the occurrence of the Effective Date.”

This specialty steel products’ manufacturer filed for Chapter 11 protection on December 15, 2016, listing more than $100 million in pre-petition assets.

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