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For Immediate Release WEIRTON, W.VA. – Weirton Steel Corp. today thanked U.S. Rep. Alan Mollohan, D-W.Va., for introducing a House bill to extend the Emergency Steel Loan Guarantee (ESLG) Program an additional two years. Mollohan's legislation, introduced Thursday evening, would simply eliminate the program's 2003 expiration date and replace it with 2005. It also would authorize up to $2 million from existing funds to run the program for another two years. The program, crafted by U.S. Sen. Robert Byrd, D-W.Va., in response to the steel import crisis (1998-2002), is scheduled to end Dec. 31. Weirton Steel applied June 30 to participate in the ESLG program. "We're very grateful for Congressman Mollohan's initiative on behalf of the program and Weirton Steel," said Mark Kaplan, company chief financial officer. "Although we anticipate the ESLG board will act on our application before the end of this year, we'd feel a lot more comfortable with a two-year extension just in case the board does not make a decision on our request by Dec. 31." A financial institution has committed a $175 million loan to Weirton Steel subject to several conditions, including the loan board's approval for the company to participate in the ESLG program. Kaplan and company Treasurer David Bordo recently met with ESLG board officials in Washington, D.C., and described their meeting as "constructive." Approval of the application and securing the loan are important components of Weirton Steel's Chapter 11 bankruptcy reorganization plan. If the board grants the request, the company plans to use the $175 million loan to finance the cost of emerging from bankruptcy, partially fund a new polymer tin coating line and upgrade production facilities. "This legislation is vital to our efforts to emerge from bankruptcy as a much stronger, more viable company. Generating additional liquidity through the ESLG Program will give us more breathing room as we work to rebound from the negative factors that forced us to file for bankruptcy," Kaplan said. "Congressman Mollohan's concern and work for the domestic steel industry is an added boost to help us through these critical times." On May 19, Weirton Steel filed to voluntarily reorganize the company in federal bankruptcy court in Wheeling, W.Va. The company cited weak steel selling prices, the effects of depressed market conditions, overwhelming post-retirement obligations, burdensome vendor contracts, the lingering effects of steel imports and competitors' low-cost operating methods for its decision to file. Weirton Steel is the sixth largest U.S.
integrated steel company.
Weirton Steel Corp. Media Contact:
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