Optima Specialty Steel

• 12/15/16 Recap: Miami-based independent specialty steel products manufacturer files for bankruptcy in the District of Delaware, capitulating under the weight of debt-laden acquisitions predicated on synergies and efficiencies that, shockingly, couldn't counteract various macroeconomic headwinds. The company cites low oil prices, a strong US dollar, excess capacity, slowing growth in other parts of the world (read: China), and decreased demand for specialty steel products. Unable to pay its December 15 debt maturity, the company filed to take advantage of the automatic stay - funded by cash collateral initially and seeking a DIP by January - and try to reorganize as a going concern.
• Jurisdiction: D. of Delaware
• Capital Structure: $171.7mm 12.5% senior secured notes (Wilmington Trust), $87.5mm 12% senior unsecured note (Wilmington Trust; privately-placed with DDJ Capital Management LLC)     
• Company Professionals:
  • Legal: Greenberg Traurig (Dennis Meloro, Nancy Mitchell, Paul Keenan, John Dodd, Ari Newman, Maria DiConza)
  • Financial Advisor: Ernst & Young LLP (Briana Richards)
  • Investment Banker: Miller Buckfire & Co., LLC (James Doak)
  • Claims Agent: Garden City Group (*click on company name for docket)
• Parties in Interest:
  • Ad Hoc Group of Unaffiliated Holders of Senior Secured Notes
    • Legal: Akin Gump Strauss Hauer & Feld LLP (Philip Dublin, Jason Rubin)
  • Official Committee of Unsecured Creditors
    • Legal: Squire Patton Boggs (US) LLP (Stephen Lerner, Norman Kinel, Nava Hazan, Elliot Smith) & (local) Whiteford Taylor & Preston LLP (Christopher Samis, L. Katherine Good, Chantelle McClamb)
  • Wilmington Trust
    • Legal: Morrison & Foerster LLP (Jonathan Levine, James Newton) & (local) Morris Nichols Arsht & Tunnell LLP (Eric Schwartz, Matthew Harvey)
  • DDJ Capital Management LLC
    • Legal: Latham & Watkins LLP (Richard Levy, Ted Dillman)

Updated 1/6/17