Kaiser Steel’s holders will seek a board majority.

In an SEC filing, a group of preferred shareholders said they would seek to elect a majority of Kaiser’s 11-member board during a special shareholders meeting to be held in the near future. The group said it was taking the action in response to Kaiser’s failure to make a scheduled repayment toward retirement of its Series B preferred shares. In another development, Kaiser said it has reached an agreement in principle with the Pension Benefit Guaranty Corp. concerning a settlement of the majority of Kaiser’s unfunded pension plan liabilities of $208 million. Under the agreement, as a result of proposed terminations of four of Kaiser’s pension plans and the assumption of the related pension fund liabilities, the Pension Benefit Guaranty Corp. will receive a secured promissory note in the amount of not less than $50 million and shares of a new convertible preferred stock with a redemption value of not more than $104 million.