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WEIRTON, W.VA. – Weirton Steel Corp. officials today said assistance from West Virginia would play an integral role in company’s plan to emerge from bankruptcy. Company officials held meetings today in Charleston with state officials to discuss the state’s possible participation in the company’s financial strategy to exit from bankruptcy. Separate meetings were held with Gov. Bob Wise and with Economic Development Authority officials including David Satterfield, the authority’s executive director. "The meetings were part of our ongoing discussions with the state to determine if it can guarantee approximately $18 million of a $175 million loan. The loan is essential for the company to emerge from bankruptcy," said Mark E. Kaplan, Weirton Steel president and chief financial officer. "While the state has yet to reach a decision, we’re pleased with the progress we’ve made. However, time is working against us. The state’s assistance would be of tremendous benefit in reaching our goal." The meetings are tied to the company’s attempt to participate in the federal Emergency Steel Loan Guarantee (ESLG) Program. The program’s board is expected to decide later this month on whether or not the company can participate in program. If the loan board approves the company’s participation, the federal government would guarantee 85 to 95 percent of a $175 million bankruptcy emergence loan. The company would receive the loan from financial institutions led by Chicago-based Fleet Capital Corp. Approval to participate, coupled with a federal judge’s approval of the company’s reorganization plan, must occur before the financial institutions would close on the loan. "Our discussions have centered on the possibility the state will guarantee the percentage of the loan not covered by the federal government. We believe our opportunity to participate in the ESLG Program is greatly enhanced if the state agrees to guarantee the smaller portion of the loan," noted Weirton Steel Chief Executive Officer D. Leonard Wise. "Weirton Steel is very important to the state and local governments. In 2002, the company paid the state $10.8 million in taxes. Brooke and Hancock counties together received $1.3 million, the school districts in those counties received $4 million in total and the City of Weirton was paid $4.2 million. The state and local economies also benefit from our $176 million annual payroll." The $175 million loan would be used to finance the cost to emerge from bankruptcy, upgrade mill equipment and partially fund construction of the nation’s first polymer tin coating line. In addition to Wise and Kaplan, Weirton Steel also was represented by David Bordo, company treasurer. Weirton Steel filed for bankruptcy protection on May 19. The company is the fifth largest U.S. integrated steel company and the nation’s second leading producer of tin mill products.
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