Optima Specialty Steel Files Chapter 11 Bankruptcy

by San Antonio Attorney

Optima Specialty Steel, Inc. has filed for Chapter 11 bankruptcy on Dec.15.  The filing included its subsidiaries.  The company said it intends to evaluate strategic options for a restructuring in its finances and deal with operational problems.  In addition, it intends to make sure that normal daily operations will not be affected.  Optima is still serving its clients and maintains its relations with its suppliers.

Optima also said that it has enough cash to cover its regular financial obligations in its business operations, which includes employee salaries and benefits in the usual course, and funding for  post-petition payables to vendors.  A variety of debtor-in-possession financing options is being considered by the company.

Optima chairman and CEO Motti Korf said the company has expanded starting 2011 by means of strategic acquisitions.

The business has a spread of markets, which includes energy, construction, agriculture, transportation, yellow goods, and industrial equipment.

Korf said the markets of Optima have waned for many years.  But they are expecting an improvement soon, he said.

The company believes that the steel industry is going to continuously grow this year.  Its plan includes concentrating on cost-reduction while making operating performance more efficient.  The company hopes that through filing Chapter 11, it will be able to get back on its foot.

Optima submitted a range of typical first day motions with the bankruptcy court, aiming to allow the company to continue with its usual business operations as it carries out restructuring.

Bankruptcy enables a company or individual to reduce the burden of debt and have an opportunity to get a financial fresh start . Depending on the type of bankruptcy filed, the debtor can retain his or her assets while completing the bankruptcy process.

Considering that every case is unique, it is important to consult San Antonio Lawyers who are experienced in handling bankruptcy cases.

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