Bankruptcy court approves Bethlehem Steel sale

Chicago, April 22 - International Steel Group Inc. said the U. S. Bankruptcy Court has approved its purchase of the assets of Bethlehem Steel Corp.

The final purchase price includes $790 million in cash and $15 million in stock at closing, and another $120 million to be paid within 75 days to cover short-term liabilities of the Bethlehem estate. ISG is assuming environmental and financing obligations, plus a $35 million commitment to the Pension Benefit Guaranty Corp., which it values at a half billion dollars.

In addition, ISG is funding the United Steelworkers of America employee Transition Assistance Program, estimated at $125 million. The transaction includes ISG receiving $1 billion in net working capital currently on the books of Bethlehem in addition to all of Bethlehem's fixed assets.

Cleveland-based ISG also said that it has reached agreement with the USWA on the principles of a basic labor agreement based on the labor contract recently ratified by ISG employees at the former LTV Steel and Acme Steel facilities. The company said negotiations to finalize the agreement will be concluded in the near future.

Bethlehem Steel is based in Bethlehem, Pa.

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