WCI Steel parent asks court to designate noteholders' plan acceptances amid alleged illegal solicitation

By Caroline Salls

Pittsburgh, Feb. 27 - WCI Steel, Inc. parent The Renco Group Inc. asked the U.S. Bankruptcy Court for the Northern District of Ohio to designate the plan of reorganization acceptance votes of the secured creditors' class for the secured noteholders' plan and modified plan because their vote solicitation violates bankruptcy law and court order, according to a Saturday court filing.

Specifically, Renco said the solicitation of acceptances violates bankruptcy law because the court has not approved the solicitation materials, and because the plan proponents deem silence by the creditors to mean acceptance of the plan, when bankruptcy law explicitly deems silence to mean rejection.

According to the motion, bankruptcy law allows the court to designate any entity whose acceptance of the new noteholder plan was not in good faith or was not solicited in good faith.

The Warren, Ohio-based steel company filed for bankruptcy Sept. 16, 2003. Its case was transferred to the court's Akron division on Jan. 4, 2005. WCI's Chapter 11 case number is 05-81439.

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