UPDATE 1-Esmark makes required public statement on debt

(Adds spokesman comments, details of debt; stock decline)

NEW YORK, June 4 (Reuters) - Steel services company Esmark Inc ESMK.O has been unable to refinance its long-term debt, raising doubt about its ability to continue as a going concern, the company said.

The statement was required by a Nasdaq rule, said the Wheeling, West Virginia-based company, which is an acquisition target of both India's Essar Steel Holdings and Russia's Severstal.

It was prompted by a comment from the company's accounting firm in Esmark's annual report on Form 10-K, filed late on May 20 with the Securities and Exchange Commission (SEC).

Last week, Russian metals and mining company OAO Severstal (CHMF.MM) began a $17 per share tender offer for outstanding common stock of Esmark.

Severstal's bid, worth about $1.24 billion, is backed by the United Steelworkers union, which had threatened to block an earlier offer to buy Esmark from Essar Steel Holdings.

Esmark spokesman Dennis Halpin told Reuters the "going concern" statement was a formality relating to asset assessments dating from last November's acquisition by Esmark of the steelmaker Wheeling-Pittsburgh.

It was not related to the offers by Severstal or Essar, both of which include the assumption of Esmark's debt, he said.

In its annual report, Chicago-based Esmark said Wheeling-Pittsburgh's total indebtedness was $407.3 million as of Dec. 31 and debt obligations in 2008 were expected to total $196.5 million.

"It changes with a definitive agreement with either suitor," Halpin said. "Or else the debt issue remains."

Esmark's board is meeting on Thursday and Friday and the Essar and Severstal offers are on the agenda, he said.

Esmark stock closed down 32 cents, or 1.7 percent, at $18.52 on the Nasdaq. (Reporting by Steve James; editing by Jeffrey Benkoe and Andre Grenon)