Weirton's bidding procedures get approved with change to break-up fee

By Jeff Pines

Washington, March 9 - Weirton Steel Corp.'s bidding procedures were for the most part approved as is, but the judge did lower the break up fee to $4.74 million from $6.375 million, according to a filing with the U.S. Bankruptcy Court for the Northern District of West Virginia entered March 8.

The break-up fee, which resulted in a several objections to the bidding procedures was $6.375 million, with up to $500,000 more to reimburse expenses. The judge approved the up to $500,000 in expenses request.

The stalking horse bidder for Weirton is International Steel Group, which is offering a total of $255 million for the company's assets. International Steel has already acquired the assets of three other bankrupt steel companies. It went public last year.

Bids are due April 6 and the auction will be conducted on April 12 in Pittsburgh if a qualifying bid is received. Qualifying bids start at $261.24 million.

A hearing on the results will be held April 14.

Weirton's Chapter 11 case number is 03-01802. It filed for bankruptcy on May 19.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.