| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers W > Headlines for Weirton Steel Corp. > News item |
Weirton Steel picks International Steel bid
New York, April 15 - Weirton Steel Corp. said it will recommend that the bankruptcy court approve the sale of its assets to International Steel Group Inc.
The Weirton, W.Va., steelmaker said it would not disclose details of International Steel's bid or the competing offer from the informal committee of secured noteholders until the court hearing on April 20.
"After a long and detailed examination of both bids for our assets, we decided that ISG has the highest and best bid that complies with applicable legal standards for submission to the court for the approval of the sale," said D. Leonard Wise, Weirton Steel's chief executive, in a news release.
Weirton Steel said the recommendation from its board of directors came two days after an auction for the assets. It noted that the board imposed several conditions that must be satisfied prior to closing of any transaction.
Mark Glyptis, president of the Independent Steelworkers Union, said in the news release: "The board's decision ends nearly a year of speculation and stress for our employees and the community. The brighter future I've often spoke of is now within our grasp."
Going into the auction, International Steel was the stalking horse bidder with an initial $255 million bid, or $158 million in cash and $97 million in assumed debt.
The informal committee's initial offer was for $261.24 million, which consists of $138.74 million in cash, a credit bid of $25.5 million and $97 million in assumed debt.
The steel company filed a voluntary petition for bankruptcy in the U.S. Bankruptcy Court for Northern District of West Virginia on May 19, 2003. Its Chapter 11 case number is 03-01802.
© 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.