WCI parent plan 'based on material omissions and false statements,' steelworkers union says

By Caroline Salls

Pittsburgh, Feb. 1 - WCI Steel, Inc. parent The Renco Group Inc.'s plan of reorganization drew a response from the United Steelworkers of America, who said the plan and related disclosure statement are "based on material omissions and false statements," according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Ohio.

According to the filing, the plan and statement fail to disclose that the union strongly supports confirmation of the secured noteholders' modified plan and that any new collective bargaining agreement between the union and Renco and WCI is no longer binding.

"The filing of this delusional disclosure statement with its references to 'fully negotiated' agreements does not change that reality," the union said in its response.

The union said it believes the modified noteholders' plan will be confirmed, and Renco's plan may soon be moot.

Renco filed its plan on Monday and said it believes that its plan is the only complete and feasible plan for restructuring WCI and providing the greatest recovery to creditors.

Renco said its plan offers a fully negotiated agreement with the United Steelworkers on the terms of a new collective bargaining agreement, a capital structure that it said will allow the new WCI to provide for the future needs of its business and management.

WCI, a Warren, Ohio-based steel company, filed for bankruptcy on Sept. 16, 2003. Its case was transferred to the court's Akron division on Jan. 4. WCI's Chapter 11 case number is 05-81439.

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