Steel Loan Agency Denies Wheeling Pitt

Wheeling-Pittsburgh Steel. Corp.’s request for a $250 million loan from the Emergency Steel Loan Guarantee Board was turned down Feb. 28^th. The guarantee was to be a central part of Wheeling-Pitts’ proposed plan of reorganization. Wheeling-Pittsburgh Steel Corporation sought Chapter 11 bankruptcy protection in November 2000.

The ESLGB was created in 1999 by Congress.

"The Board was unable to make the affirmative finding, required by the statute, that the prospective earning power of the borrower, together with the character and value of the security pledged, furnish reasonable assurance of repayment of the loan to be guaranteed in accordance with its terms," it said in a statement.

The company had hoped to use the loan, along with financial assistance from the states of Ohio and West Virginia, to install an electric arc furnace at its Ohio steel operations.

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