Two Creditors OK Weirton Steel Sale

[AP / VICKI SMITH, Associated Press Writer]

WHEELING, W.Va. (AP) -- Two of the largest creditors of
bankrupt Weirton Steel Corp. have signed a proposed settlement that
would allow the sale of the company to Ohio's International Steel
Group but others have not decided whether to approve the agreement.
Corsair Partners and Ritchie Capital have agreed to the
financial settlement but a significant number of other creditors
were still reviewing the proposal Tuesday, Weirton Steel spokesman
Gregg Warren said.
If all the creditors do not approve the agreement, a hearing
will be held Wednesday in federal court on their motion to slow or
stop or sale. If the settlement wins all the creditors' approval, it
must still be approved by U.S. Bankruptcy Court Judge L. Edward
Friend II.
The amount of the proposed settlement has not been disclosed
but the creditors would get a payment toward what they say is a $145
million debt.
The Informal Committee of Secured Noteholders has tried
repeatedly to stop ISG's $237 million purchase of Weirton Steel. The
group attempted to outbid ISG, arguing they could recoup their
losses and better serve other creditors. When they lost, they went
to court seeking to block the deal.
The Weirton transaction would make ISG the largest
integrated steelmaker in the nation, surpassing Pittsburgh-based
U.S. Steel.
ISG shares were up $1.54, or 5.4 percent, at $30.51 in late
afternoon trading Wednesday on the New York Stock Exchange.

[AP / VICKI SMITH, Associated Press Writer]

ISG shares were up $1.68, or nearly 6 percent, to close at
$30.65 on the New York Stock Exchange.