Metal Management Reorganizes

Metal Management, Inc. announced that the disclosure statement with respect to its plan of reorganization was approved by the Delaware Bankruptcy Court at a hearing held on May 4, 2001.

Albert Cozzi, Metal Management’s chairman and CEO remarked, "We are pleased our company is moving forward with the solicitation of its plan of reorganization which will put us in a position to emerge from bankruptcy next month. While bankruptcy was a strategic tool that allowed us to efficiently recapitalize the company it has now served its purpose and it is time to move forward. Looking forward, we intend to prove the basis for industry consolidation with a rational capital structure, lower fixed costs, and strong regional management teams. We owe a great deal of gratitude to our dedicated workforce, suppliers, and lenders for their conviction and commitment to Metal Management throughout this reorganization process."

 Metal Management indicated that the approval by the Bankruptcy Court of the disclosure statement and related balloting procedures was a significant milestone in its efforts to emerge from Chapter 11 bankruptcy protection. According to the company, the approval of the disclosure statement will allow the company to begin solicitation of its plan of reorganization. The plan of reorganization provides for the conversion of in excess of $200 million of prepetition indebtedness into equity reducing leverage and interest expense. The plan of reorganization contemplates that the company will emerge from bankruptcy on or before June 30,2001.