Creditors counter bid of ISG for Weirton Steel

Creditors counter bid of ISG for Weirton Steel

According to recent news in the market, a group of creditors offered $261.2 million yesterday for the assets of Weirton Steel Corp not to let takeover of the company by ISG at the tender, which will take place on April 12, 2004. The Informal Committee of Secured Noteholders, owing $118 million, offered $261.2 million to defeat ISG at the tender. The noteholders offered $138.74 million plus $25.5 million for credit and $97 million for assumed liabilities. The noteholders stated that, if they acquire Weirton Steel, the company will have strong balance sheet and possess financial resources for investments. Potential bidders will be informed on April 9, 2004 whether they shall take part at the auction on April 12, 2004. Moreover, the prospective buyer should also reach a labor agreement with the union. As previously reported by SteelOrbis, ISG had already reached a five-year labor contract with the union, which increases its chance at the tender.