Optima Specialty Steel filed with the U.S. Bankruptcy Court a plan support agreement (PSA) relating to the Debtors’ motion for entry of an order (i) authorizing Debtors’ entry into and performance under a PSA and (ii) approving related expense reimbursement.
The PSA explains, “Subject to the terms and conditions hereof, OA agrees that OA shall timely make the following deposits into escrow (collectively, the ‘Good Faith Deposits’): (i) an initial deposit in the amount of $10 million no later than 7 calendar days after full execution of this Agreement; (ii) an additional deposit in the amount of $5 million no later than 7 calendar days following the filing of the Agreed Plan and Disclosure Statement with the Bankruptcy Court; (iii) an additional deposit in the amount of $5 million no later than 7 calendar days after the date of entry of the Plan Support Agreement Approval Order by the Bankruptcy Court; and (iv) an additional deposit in the amount of $5 million no later than 7 calendar days following entry of the Disclosure Statement Order.”
In addition, “OA may terminate this Agreement upon written notice, at any time after the occurrence of, and during the continuation of, any of the following events (each, an ‘OA Termination Event’), unless waived in writing by OA; provided, however, that the Debtors shall have 5 Business Days after receipt of such written notice to cure any such OA Termination Event: …the failure of the Debtors to achieve any of the following: (A) the filing in the Bankruptcy Court by not later than April 21, 2017 of this Agreement, the Term Sheet and Plan Support Agreement Motion seeking Bankruptcy Court entry on or before May 19, 2017 of the Plan Sponsor Agreement Approval Order; (B) the entry of the Plan Support Agreement Approval Order, in form and substance agreeable to OA, by the Bankruptcy Court on or before May 19, 2017; (C) the entry of the Disclosure Statement Order by the Bankruptcy Court on or before May 31, 2017; (D) the entry of the Confirmation Order by the Bankruptcy Court on or before June 30, 2017; (E) the Confirmation Order becoming a Final Order on or before July 20, 2017; and (F) the occurrence of the Effective Date on or before July 31, 2017.”
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