Weirton Steel noteholders get April 30 hearing with district court

By Jeff Pines

Washington, April 28 - Weirton Steel Corp.'s informal committee of secured noteholders will get their day in court - April 30 - to determine if a delay in the sale of the company's assets to International Steel Group Inc. is appropriate.

A district judge granted them a hearing in a Tuesday afternoon order.

The committee and J.P. Morgan Trust Co. NA as trustee for the notes petitioned the U.S. District Court for the Northern District of West Virginia for a delay after the U.S. Bankruptcy Court for the District of Northern West Virginia denied their request for a delay while they work on an appeal.

Since there are no appellate courts in the bankruptcy court system, parties who want to appeal have to file appeals with the district courts.

At issue is whether International Steel Group's $237 million bid is superior to the committee's bid of $390.2 million. Weirton Steel chose International Steel's offer and the judge approved.

The bankruptcy judge ruled with the company because the committee did not have all of the financing was in place, it did not have an agreement with the union and the judge did not think the company could continue successfully as an independent entity.

International Steel is offering cash and it has an agreement with the union.

The sale is scheduled to be consummated on May 4.

Weirton filed for bankruptcy on May 19, 2003. Its Chapter 11 case number is 03-01802. Its civil action number is 5:04MC8.

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