LTV Seeks Bankruptcy Court Approval to Cease Operations

The LTV Corporation yesterday filed motions in the U.S. Bankruptcy Court to implement an Asset Protection Plan, reject labor agreements and take other actions necessary to idle its integrated steel operations and prepare the facilities for sale. The company announced this decision because it  no longer has sufficient liquidity or sources of other capital to operate the integrated steel facilities. The actions taken will help LTV to preserve the value of its assets for the creditors, and protect the environment and the safety of the communities in which LTV Steel operates.

LTV Copperweld, comprised of certain subsidiaries of The LTV Corp., including Copperweld Corp., Welded Tube Co. of America and the LTV Steel Tubular Division, will not be affected by the actions. LTV Copperweld is in the process of obtaining separate financing and will continue to operate and supply its customers with high quality tubular and bimetallic products.

Continued deterioration of the economy forced the company to again seek direct wage and benefit reductions in order to qualify for $250 million of government guaranteed loans. The company was not able to obtain sufficient reductions,'' said William Bricker, LTV’s chairman and CEO.

LTV filed for protection under chapter 11 of the U.S. Bankruptcy Code on December 29, 2000 as a result of losses incurred by its integrated steel business. LTV obtained debtor-in-possession financing in March 2001 and developed a plan to restructure its integrated steel operations as a low-cost, viable business.

LTV plans to close its steel mills in Cleveland and Indiana Harbor, following court approval. The facilities will be ``hot idled'' for a period of about 60 days to allow potential purchasers to acquire the facilities in operating condition. The Hennepin, Ill., steel finishing plant also will be maintained on a hot idle status and offered for sale. LTV Steel's coke plants in Warren, Ohio and Chicago will be shutdown and maintained on cold idle status.