As of March 31, 2012, AGY US cash balance and total debt, net of cash were $1.2 million and $190.8 million, respectively. Compared to December 31, 2011, the $5.7 million decrease in net debt was primarily attributable to a decreased reliance on the borrowing facilities for operating cash needs in our AGY US business segment. As of March 31, 2012, AGY US had total liquidity of approximately $22.1 million.
AGY US liquidity improved during the first quarter of 2012 due primarily to increased operating cash flow. Additionally, higher platinum and rhodium market prices impacted positively the AGY US borrowing base under the $50 million Senior Secured Revolving Credit Facility compared to December 31, 2011.As of March 31, 2012, AGY US cash balance and total debt, net of cash were $1.2 million and $190.8 million, respectively. Compared to December 31, 2011, the $5.7 million decrease in net debt was #
As of March 31, 2012, AGY Asia cash balance and total debt, net of cash were $2.0 million and $38.1 million, respectively, or a $0.6 million decrease compared to December 31, 2011. As of March 31, 2012, AGY Asia had total liquidity of approximately $4.5 million. AGY Asia liquidity remained essentially flat during the quarter compared to December 31, 2011 but was subsequently reduced in April 2012 by approximately $2.5 million as the AGY Asia lender terminated access to undrawn borrowing availability under the AGY Asia financing agreements.
As previously discussed, the AGY Asia reporting segment has experienced declining operating profits, has significant debt service obligations coming due in 2012 and may require funding for the rebuilding of the furnace, located in the People's Republic of China. As a result, in April 2012, we retained an advisory firm to provide certain investment banking services to evaluate and assist with a possible combination of AGY Asia with another party, a recapitalization of a significant portion of AGY Asia's indebtedness or a change of control of AGY Asia in a transaction involving the primary lender for the Asian operation.
We do not expect any possible transaction resulting from this engagement to impact the AGY US business segment as only approximately 1% of the reported revenue for AGY US was derived from products produced by AGY Asia over the last 12 months. Additionally, AGY US expects to maintain its commercial presence and sales channels for glass fibers produced in North America but sold to the Asian market, primarily for specialty electronics applications. While the Company has reported the need to complete a rebuild of the furnace in Asia, it is evaluating alternatives to extend the life of the furnace.
Our AGY US business segment has recently increased production output of its S-2 Glass fiber by 20% with the capability to further increase its output as market demand dictates. This expansion is expected to enable AGY to meet growth in both the aerospace and industrial markets for high-performance glass fibers used for composite reinforcement.
In late March 2012, AGY US entered into a long-term agreement with CTG/Taishan Fiberglass of Shandong Province, China to manufacture under AGY's license the new S-1 HMTM high-performance glass rovings for wind energy turbine applications.
AGY Holding Corp
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