Metals USA reaches agreement on reorganization, noteholders to receive all equity

New York, June 21 - Metals USA, Inc. said it reached agreement with the official committee of unsecured creditors on terms or a reorganization plan for the company to emerge from Chapter 11.

Under the agreement, holders of the $380 million of 8.625% senior subordinated notes and trade creditors will receive 100% of the new common stock in the Houston metals distributor and processor.

Existing equity holders will receive five-year warrants to buy up to 15% of the new common stock. The exercise price will be calculated to give full recovery for unsecured creditors.

The agreement is subject to definitive documentation, required approvals and exit financing.

Metals USA filed for Chapter 11 on Nov. 14, 2001.

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