Weirton Steel obtains court approval to delay hearing on reorganization plan

By Carlise Newman

Chicago, Dec. 8 - Weirton Steel Corp. has obtained court approval to delay a hearing for approval on the company's reorganization plan, with no scheduled hearing yet in place.

The company sought the delay of the Dec. 16 hearing to provide it additional time to complete its reorganization plan. The plan anticipated Weirton's emergence from bankruptcy by Dec. 31 because the Emergency Steel Loan Guarantee Program expires that day, according to a news release.

Regarding the ESLG Program, the company recently received conditional approval to participate in the program, which would guarantee 88% of a $145 million bankruptcy emergence loan that the company anticipates receiving from several lending institutions.

The bankruptcy attorney conveyed to the court that the company is continuing to pursue a dual path of emerging from bankruptcy as a stand-alone company, or through selling the company's assets.

Weirton Steel, a steelmaker based in Weirton, W. Va., filed a voluntary petition for bankruptcy on May 19.

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