Weirton Steel waits approval for its reorganization plan

Weirton Steel waits approval for its reorganization plan

US integrated steel company Weirton Steel submitted its reorganization plan to the US Bankruptcy Court yesterday to exit from bankruptcy protection by December 31, 2003. The plan is subject to the approval of the Court and votes of creditors as well as share holders. According to the reorganization plan, Weirton Steel will continue operating its steelmaking, ironmaking and finishing facilities with a remarkably lower cost structure. Funding, that plays a great role in effectiveness of the plan, will be provided by a loan guarantee program where 85% to 95% of the term loan will be guaranteed by the government. In case the loan guarantee board approves Weirton Steel's application later this month the loan will offset costs to exit from bankruptcy, revamp equipments and complete a new polymer tin coating business. Another possibility that the company considers is that to sell assets to a strategic or financial investor. The company filed for bankruptcy protection back on May 19 this year.