The U.S. Bankruptcy Court issued an order approving Optima Specialty Steel’s Disclosure Statement and scheduled a June 29, 2017 hearing to consider the First Amended Joint Chapter 11 Plan, with objections due by June 22, 2017.
As previously reported, “Specifically, Optima Acquisitions LLC, a Delaware limited liability company (‘OA’ or the ‘Plan Sponsor’), which is the sole 100% common stock shareholder of Debtor Optima and is the Plan Sponsor, will fund the Plan with the Plan Sponsor Contribution, a $200 million cash equity contribution to Reorganized Optima as a contribution in respect of the Plan Sponsor’s outstanding and Unimpaired Existing Optima Common Stock.”
In addition, “Under the Plan, the Debtors will raise an additional approximately $105 million exit financing term loan and an exit financing revolver of approximately $35 million, commitments for which will be obtained from one or more third parties. The $200 million Plan Sponsor Contribution and the approximately $140 million of exit financing will fund the implementation of the Plan’s provisions providing for unimpaired treatment to all creditors and leave OA (as sole shareholder) unimpaired. In return for the $200 million Plan Sponsor Contribution, OA will retain its existing 100% equity interest in Optima.”
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