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WEIRTON, W.VA. – Weirton Steel Corp. today called upon West Virginia Gov. Bob Wise to assist the company with several issues including the Emergency Steel Loan Guarantee (ESLG) Program and the continuation of steel import tariffs. Wise met for nearly an hour with Weirton Steel Chief Executive Officer D. Leonard Wise at the company’s headquarters. "Gov. Wise is fully aware of every issue affecting Weirton Steel. As a former congressman, he has many important contacts in Washington. He is working on our behalf in the nation’s capital on the tariff issue as well as in regard to our application to participate in the loan program, especially on our attempt to have the program extended," said Gregg Warren, Weirton Steel spokesman. In addition to the loan and tariff issues, the two discussed the status of the company’s bankruptcy reorganization plan. "Their meeting was very productive. The governor is constantly monitoring our reorganization and is doing what he can to help the company emerge from bankruptcy," Warren added. In regard to the tariffs, President Bush, who imposed tariffs on certain steel imports from March 2002 through March 2005, has the option of continuing, ending or modifying the tariff program after Sept. 19. Domestic steelmakers maintain the tariffs have significantly slowed what had been record surges of steel imports. Concerning the ESLG Program, Weirton Steel applied in June to gain the loan board’s approval to participate in the program. If the board grants the request, the company would receive a $175 million loan from a financial institution to help it upgrade equipment, partially fund a new tin polymer coating line and offset a portion of the expense of emerging from bankruptcy. By participating in the program, the government would guarantee between 85 and 95 percent of the loan. The loan program was developed by U.S. Sen. Robert Byrd, D-W.Va. The company also wants the Dec. 31 ESLG Program termination date extended to ensure the loan coincides with its final reorganization efforts. Proposals in the Senate and the House are pending to extend the program for two years. Weirton Steel, the fifth largest U.S. integrated steel company, filed a voluntary petition for bankruptcy protection on May 19 with a federal bankruptcy court in Wheeling, W.Va.
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