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WEIRTON, W.VA. – Weirton Steel Corp. officials reported they were satisfied with a meeting held today in Washington, D.C., with Emergency Steel Loan Guarantee (ESLG) Program representatives. Weirton Steel applied in June to participate in the program. If the ESLG Loan Board approves the application, a financial institution will lend the company $175 million. Under program guidelines, the federal government guarantees to repay most of the loan if the company is unable to do so. "We met for nearly three hours and provided a detailed financial plan on how we would utilize the loan and how it would be repaid. The board officials had many good questions, observations and recommendations. The meeting was beneficial to both parties," said Mark E. Kaplan, company president and chief financial officer. "The loan board has yet to schedule a date to act on our application. However, a meeting with its staff several weeks ago, followed by today’s meeting with its staff and consultants, is moving us closer to that day." Kaplan was joined by the company’s Chief Executive Officer D. Leonard Wise and its treasurer, David Bordo. The ESLG Program, crafted by U.S. Sen. Robert Byrd, D-W.Va., provides that the federal government will guarantee between 85 and 95 percent of loans to steelmakers that have suffered as the result of steel import surges and other factors. If approved, the company plans to use the loan to upgrade its mill equipment, partially fund a new polymer tin coating line and fund the costs associated with emergence from bankruptcy. The ESLG program is scheduled to expire on Dec. 31. Weirton Steel has been lobbying the federal government to extend the expiration date to ensure the loan board has time to make its decision in addition to providing additional time to settle any remaining issues associated with the company’s bankruptcy reorganization plan. Last week, U.S. Rep. Alan Mollohan was successful in moving legislation out of a House committee to extend the program for two years. Byrd also was successful with a similar measure he had passed in a Senate committee. Weirton Steel, the fifth largest U.S. integrated steelmaker and one of the largest domestic tin mill products producers, filed for bankruptcy protection in May. The company employs 3,500.
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