 |
||
   |
 |
For Immediate Release WEIRTON, W.VA. – Weirton Steel Corp. executives termed Wednesday's meeting with officials of the Emergency Steel Loan Guarantee (ESLG) Board as "constructive." Weirton Steel applied June 30 to participate in the ESLG program. A financial institution has committed a $175 million loan to the company subject to various conditions including the steelmaker gaining loan board approval to participate in the program. Company Chief Financial Officer Mark Kaplan and company Treasurer David Bordo met in Washington, D.C., with the ESLG's executive director and legal counsel. "While the loan board is in the early stages of reviewing our application, our meeting with board officials went very well. We had the opportunity to elaborate on our application and answer their questions," Kaplan said. "Approval of our application and securing the loan are important components of our reorganization plan. We anticipate a decision by the end of the year." If approved, the company's plans for the $175 million loan include funding the cost of emergence from bankruptcy, upgrading production facilities and partially funding a new polymer tin coating line. U.S. Sen. Robert C. Byrd, D-W.Va., crafted ESLG in response to the steel import crisis (1998-2002) which involved record surges of steel imports, a portion of which were sold at prices that violated federal laws. The program assists U.S. steel mills financially devastated by the imports. ESLG provides that the government will cover 85 to 95 percent of the loan if a company is unable to meet its repayment obligations. "The ESLG program is scheduled to terminate on Dec. 31, 2003. We are continuing to work with the Bush administration and members of Congress to possibly have the loan program extended beyond that date. We hope our application will be approved by then, but as a safeguard we would feel more comfortable if the government extends the program," Kaplan commented. Local congressmen who have sent letters of support to the ESLG board for Weirton Steel's application include: Byrd, Sen. Jay Rockefeller and Rep. Alan Mollohan, both D-W.Va.; and Reps. Bob Ney, R-Ohio, and Ted Strickland, D-Ohio. On May 19, Weirton Steel filed a voluntary petition to reorganize under Chapter 11 bankruptcy. Weirton Steel is the sixth largest U.S. integrated steel company.
Weirton Steel Corp. Media Contact:
|
