WHEELING, W.Va., June 5 /PRNewswire-FirstCall/ -- Esmark Incorporated
(Nasdaq: ESMK) (the "Company"), today provided clarification regarding its
press release issued yesterday in compliance with NASDAQ rules. Reports
stating that the Company had not refinanced its long-term debt are
erroneous. As reported, on May 6, 2008, the Company refinanced its senior
secured term loan with a $110 million dollar facility with Essar Steel
Holdings Limited, which does not mature until June 1, 2009. The Company
also extended its short term revolving credit agreements to no later than
September 30, 2008. Because the short term revolving credit facilities
mature no later than September 30, 2008, the Company received a
going-concern qualification in connection with its Annual Report on Form
10-K. The Company reported in its Form 10-K that in the event it is unable
to refinance or repay such short-term debt, it would consider alternative
capital arrangements with third parties or obtaining proceeds from the
disposition of assets. Currently, as reported on April 30, 2008, the
Company has agreed to the material terms of a proposed tender offer and
merger with Essar Steel Holdings Limited for the purchase of all of the
outstanding common stock of the Company for $17.00 per share which the
Company anticipates would be consummated prior to September 30, 2008 if the
Company enters into the proposed merger agreement with Essar Steel Holdings
Limited.
Esmark CEO James Bouchard stated: "Our Company has improved its
liquidity and our balance sheet is stronger than at any time since I was
appointed Chairman of Wheeling-Pittsburgh Corporation on December 1, 2006.
We have a sincere appreciation for Essar and the financing they have
provided to help strengthen our balance sheet in a time of troubled global
credit markets. It is one of many reasons we chose to partner with them. We
expect to file our Form 10-Q for the first quarter next week and we will
announce guidance for the second quarter. Our businesses continue to
benefit from the strong market prices which we are currently experiencing."
Forward-Looking Statements Cautionary Language
This press release contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended,
relating to the future financial performance of the Company. These
forward-looking statements are based on current expectations and
assumptions that are subject to risks and uncertainties that could cause
actual results to differ materially. These risks and uncertainties include,
among others, factors relating to (1) the Company's potential inability to
generate sufficient operating cash flow to service or refinance its
indebtedness, (2) the risk that the conditions to closing under the
proposed Esmark / Essar merger transaction may not be satisfied, (3)
uncertainties concerning the United Steelworkers right to bid and
agreement, and (4) certain other risks detailed in the other reports and
filings with the SEC by the Company, which identify important risk factors
that could cause actual results to differ from those contained in the
forward-looking statements.
In addition, any forward-looking statements represent the Company's
views only as of today and should not be relied upon as representing views
as of any subsequent date. While the Company may elect to update
forward-looking statements from time to time, it specifically disclaims any
obligation to do so.
About Esmark Incorporated
Esmark Incorporated is a vertically integrated steel producer and
distributor, combining steel production capabilities through both blast
furnace and electric arc furnace technologies with the just-in-time
delivery of value-added steel products to a broad customer base
concentrated in the Ohio Valley and Midwest regions. Currently
headquartered in Wheeling, WV, the Company is a producer of carbon
flat-rolled products for the construction, container, appliance,
converter/processor, steel service center, automotive and other markets.
The company's products include various sheet products such as hot rolled,
cold rolled, hot dipped galvanized, electro-galvanized, black plate and
electrolytic tinplate. More information about Esmark can be found at
http://www.esmark.com.
SOURCE Esmark Incorporated
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CONTACT:
Media or Investor Relations, Dennis Halpin of
Esmark Incorporated, +1-304-234-2421, mobile, +1-304-650-6474,
dhalpin@esmark.com; or Media, Bill Keegan of Edelman,
+1-312-927-8424, bill.keegan@edelman.com
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