New Delaware Chapter 11 Filing – Optima Specialty Steel, Inc.
Optima Specialty Steel, Inc. and four of its affiliates have filed petitions for chapter 11 bankruptcy relief in the United States Bankruptcy Court for the District of Delaware (Case No. 16-12789 (KJC)). The Debtors are leading independent manufacturers of specialty steel products utilized in various industries, including the energy and transportation markets. The petition lists between $100 million and $500 million in both assets and liabilities. Factors such as low oil prices and a strong U.S. Dollar as well as the Debtors’ significant debt load all contributed to the decision to seek chapter 11 relief. According to the First Day Declaration, the Debtors exhausted their out-of-court alternatives and hope to emerge from Chapter 11 bankruptcy with a stronger balance sheet and improved operations. Garden City Group is the proposed claims agent. The Debtors seek joint administration of these cases. These cases have been assigned to the Honorable Kevin J. Carey.
Contact Norman L. Pernick and Nicholas J. Brannick for more information.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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