Sharon Steel To Make Loan Payments After Exhange Offer Completed
Apr. 01, 1985
MIAMI BEACH, Fla. (AP) _ Sharon Steel Corp. said Monday it won't make the $27.3 million in interest payments to bond holders due March 1 and later this month until it completes a debenture-stock exchange offer.
The offer, proposed by Sharon Steel Chairman Victor Posner, would allow holders of outstanding debentures due up to the year 2000 to exchange them for a package of new secured debentures and common stock.
Officials of the Miami Beach company would only say that the offer would be made in ''the near future.''
If the deal is successful, the company said, it expects to pay the interest on outstanding debentures that are not exchanged in the offer.
Sharon Steel also announced it's negotiating with its banks for consent to sell certain assets to meet cash requirements, including a payment due on March 29 of about $10.8 million on a note held by the trustees of UV Industries Inc. Liquidating Trust.
On March 1, Sharon Steel owed $23 million interest payment on its 13.5 percent debentures, which mature in 2000. It will owe $4.3 million in interest April 15 on 14.25 percent debentures that mature in 1999.
Sharon Steel said it expects to report a net loss of $145 million in 1984, compared to a net loss of about $68.8 million in the previous year.
Net sales and operating revenue are expected to be $897.5 million for 1984, compared to $820.8 million in 1983.