ESMK Esmark (MM)

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/. DATASOURCE: Esmark Incorporated CONTACT: Media or Investor Relations, Dennis Halpin of Esmark Incorporated, +1-304-234-2421, mobile, +1-304-650-6474, ; or Media, Bill Keegan of Edelman, +1-312-927-8424, Web site: http://www.esmark.com/ Company News On-Call: http://www.prnewswire.com/comp/967451.html

Copyright