Wheeling-Pitt Exits Bankruptcy

Wheeling-Pittsburgh Corp. (WPC), Wheeling, W. Va., announced that it has formally exited bankruptcy. The integrated steelmaker filed for Chapter 11 bankruptcy protection in November of 2000.

Wheeling-Pittsburgh Corp. president and CEO James G. Bradley pointed to the ratification of the labor agreement between WPC and the United Steel Workers of America as the “final, necessary piece of the puzzle” the company needed to exit bankruptcy.

Upon emerging from bankruptcy, the steelmaker can now claim a $250 million federally guaranteed loan package. According to an AP report, since the company emerged from bankruptcy protection by Aug. 15, it can claim the loan from the Royal Bank of Canada. The loan is guaranteed by the federal Emergency Steel Loan Guarantee Board.

Partial proceeds from the loan will reportedly be put toward a new $110 million electric arc furnace (EAF), which will make WPC a larger consumer of ferrous scrap than it is with its current blast furnace production.

The new EAF capacity, which is replacing a 100-year-old blast furnace, will be installed at the company’s Mingo Junction, Ohio, facility by 2005. Other loan proceeds will be used to pay creditors.

The company will retain some of its blast furnace capacity, potentially allowing it to switch between EAF and iron ore-based blast furnace methods, depending on raw material costs.

“With the labor agreement and new financing in place, the company is now ready to move forward,” says Bradley. “We look to the future with pride, enthusiasm and determination. We’re ready to put our new strategic plan into action.”

The executive also credited employees who worked with the company through its nearly three-year bankruptcy process. “The men and women of this company have continued to produce high-quality products. In addition to our employees, I am grateful for the support of our lenders, our elected and government officials, our customers and our suppliers. We were able to work through a difficult time as a team,” says Bradley.

Wheeling-Pittsburgh Corp. employs more than 3,500 people at plants in Follansbee and Beech Bottom, W. Va.; in Allenport, Pa.; and in the Ohio towns of Steubenville, Mingo Junction, Canfield, Yorkville and Martins Ferry. The company specializes in steel beams and other products for the construction industry.