Weirton Steel Files Voluntary Petition to Reorganize
May 20, 2003
Weirton Steel Corp., Weirton, W. Va., filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of West Virginia in Wheeling. Weirton Steel emphasized that normal operations and customer service will continue without disruption, including sales, production, order processing and shipments. The company has secured a $225 million debtor-in-possession (DIP) financing facility to furnish sufficient working capital for its operations. Weirton will maintain control and possession of its assets while undergoing Chapter 11 reorganization, instead of having a court-appointed trustee operate the company. Weirton Steel also is seeking court approval to form a retiree committee to assist the company in addressing the legacy cost issue. Shares of the company's common stock (WRTL) continue to trade on the OTC Bulletin Board. The company has not set a target date for emergence from Chapter 11.