Weirton, Creditors Tentatively Settle

[AP / VICKI SMITH, Associated Press Writer]

WHEELING, W.Va. (AP) -- Weirton Steel Corp. struck a
tentative deal Friday with a group of creditors that have tried to
stop the sale of the company to Ohio's International Steel Group.
The proposed settlement, which still must be approved by a
U.S. Bankruptcy Court judge, would clear the way for completion of
the sale as early as next week.
Weirton Steel spokesman Gregg Warren would not reveal the
amount the noteholders would receive but acknowledged it would be
more than the $20 million they would get from the sale.
The Informal Committee of Secured Noteholders says the
creditors are owed $145 million.
Warren said the settlement figures will be revealed in
bankruptcy court.
"We don't want to drag this out," Warren said. "We want the
sale to go through."
The tentative settlement averted a hearing scheduled Friday
morning in U.S. District Court on the noteholders' petition to slow
or stop the sale. The case now goes back to bankruptcy court.
If ISG can close the deal, it would surpass U.S. Steel as
the nation's biggest steelmaker in terms of production capacity.

[AP / VICKI SMITH, Associated Press Writer]

WHEELING, W.Va. (AP) -- Weirton Steel Corp. struck a

tentative settlement Friday with a group of creditors that have

tried to stop the sale of the company to Ohio's International Steel
Group.

The settlement, which still must be approved by a U.S.

Bankruptcy Court judge, would clear the way for completion of the
sale as early as next week.
Weirton Steel spokesman Gregg Warren would not reveal the
amount the noteholders would receive but acknowledged it would be
more than the $20 million they would get from the sale.
The Informal Committee of Secured Noteholders says the
creditors are owed $145 million.
Warren said the settlement figures will be revealed in
bankruptcy court.
"We don't want to drag this out," Warren said. "We want the
sale to go through."
The tentative settlement averted a hearing scheduled Friday
morning in U.S. District Court on the noteholders' petition to slow

or stop the sale. The noteholders contended they could recoup their
losses and serve other creditors better than ISG by hiring managers
to run Weirton as a private, stand-alone company.

The case now goes back to bankruptcy court.

U.S. Bankruptcy Judge L. Edward Friend II approved the
$237.5 million deal with ISG on April 22, then refused earlier this
week to delay completion of the sale beyond the 10 days required by
law. That 10-day period expires at midnight Monday.
Under a time line presented Friday morning to U.S. District
Court Judge Frederick P. Stamp Jr., the automatic delay of the sale
would expire at midnight Wednesday, giving attorneys for the
creditors time to have all of their clients sign off on the deal.
Noteholders' attorney Lisa Beckerman said her clients have
accepted the tentative agreement but will meet Tuesday to review the
details.
"I'm cautiously optimistic I'll be able to achieve all this
within the time frame," she told Stamp.
Messages left with ISG spokesman Brian Kurtz were not
immediately returned Friday.
Mark Glyptis, president of Weirton's 3,000-member
Independent Steelworkers Union, said he was pleased by the tentative
settlement.
"It's one step closer to closure," he said. "I believe it's
going to get resolved. The demeanor of the parties suggests
resolution."
One issue remains unresolved: self-insured Weirton's
obligation to the state Workers' Compensation Commission, which also
has challenged the sale. The commission has said the sale could
leave a workers' compensation deficit as large as $80 million for
large employers who pay costs for their own injured workers.
Without state funding, those businesses must cover that
deficit, which could raise their premiums as much as 50 percent.
Warrren said Weirton is negotiating with the state to
resolve the issue.
If ISG can close the deal, it would become the largest
integrated steelmaker in the nation in terms of domestic production,
surpassing Pittsburgh-based U.S. Steel.

[AP / VICKI SMITH, Associated Press Writer]

ISG was pleased with the proposed settlement, spokesman
Brian Kurtz said Friday.
"It looks like it's moving in the right direction as far as
ISG is concerned," Kurtz said.