Lee Steel gets final approval on post-bankruptcy financing agreement

By Kali Hays

New York, May 12 – Lee Steel Corp. won final approval of its post-bankruptcy financing on Tuesday from the U.S. Bankruptcy Court for the Eastern District of Michigan.

As previously reported, the company’s lenders agreed to amend pre-bankruptcy loans so their terms end on Aug. 28. Lee Steel’s revolving financing will be capped at $30 million.

Without access to the financing, Lee Steel would have no working capital in order to continue operating and peruse asset sales while in bankruptcy.

Under the financing agreement, Lee Steel is required to obtain court approval of the bid procedures for the sale of its assets by July 13, conclude the auction by Aug. 11, obtain approval of the sale by Aug. 14 and close the sale by Aug. 28.

The company proposed bid procedures for a sale of substantially all company assets on May 1.

Lee is a Novi, Mich., steel maker that filed for bankruptcy on April 13. The Chapter 11 case number is 15-45784.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.