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Weirton Steel agrees $255 million sale to International Steel
By Reshmi Basu
New York, Feb. 18 - Bankrupt Weirton Steel Corp. has agreed to sell its assets to Cleveland-based International Steel Group for $255 million including cash and assumption of liabilities.
Within the next several days, Weirton will file details of International Steel's offer with the bankruptcy court and ask the judge to approve procedures for an auction.
International Steel is looking to bolster its number two standing as the nation's largest producer with the acquisition of Weirton's tin plate mill, one the nation's largest.
"Our goal has been to secure the best possible solution for all of our stakeholders and to maintain a steel operation in Weirton," said Weirton's chief executive officer D. Leonard Wise in a news release. "We believe ISG provides the answer."
However, Weirton Steel also announced Wednesday that it will stop paying for retiree health care and life insurance programs.
The Weirton, W.Va. company, hurt by a world-wide coke shortage and labor problem, filed a voluntary petition for bankruptcy in the U.S. Bankruptcy Court for Northern District of West Virginia on May 19, 2003.
Weirton Steel pursued a dual track aiming to either emerge as a stand-alone company or to sell its assets. On Jan. 28, the company obtained an extension of its exclusivity period to March 31 to file a plan of reorganization, much to the chagrin of hungry creditors who complained they were being pressured to accept an unfavorable reorganization plan.
Upon court approval, the sale to International Steel is expected to be completed in the second quarter of this year.
Weirton's Chapter 11 case number is 03-01802.
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