For Immediate Release
BETHLEHEM, Pa., April 26, 2002 - By order of a federal bankruptcy court judge, Bethlehem Steel Corporation has the exclusive right to acquire full ownership of Columbus Coatings Company and the companion Columbus Processing Company, both located near Columbus, Ohio.
Chief Judge William T. Bodoh of the U.S. Bankruptcy Court, Northern District of Ohio, Eastern Division, approved the settlement of a lawsuit brought by Bethlehem against LTV and agreed to grant Bethlehem the exclusive right to acquire the interest of LTV Steel in the 50/50 joint venture of Columbus Coatings that is currently owned by subsidiaries of both LTV Steel and Bethlehem.
The closing of the transaction is subject to, among other things, receipt by Bethlehem of authority from the bankruptcy court having jurisdiction over its bankruptcy case, receipt by the parties of any necessary regulatory approvals and execution of definitive documentation. At the closing, Bethlehem will pay $2.5 million, forgive certain liabilities owed by LTV Steel and assume LTV Steel's portion of the outstanding venture modernization loan.
"Columbus Coatings Company is a strategic part of Bethlehem's Burns Harbor, Ind., Division and critical to its long-term success and future," said Robert S. Miller, Jr., Bethlehem's chairman and chief executive officer. "Bethlehem's acquisition of all of the business allows us to control its destiny."
The agreement will settle all other matters between LTV Steel and Bethlehem Steel related to Columbus Coatings and Columbus Processing.
Columbus Coatings began operation in fall 2000 to produce up to 500,000 tons per year of galvannealed and galvanized sheet primarily for the automotive industry. Columbus Processing Company takes Columbus Coatings' material for slitting, inspection and warehousing. Bethlehem has been continuing to supply material to Columbus Coatings from its Burns Harbor Division following the exit in December 2001 by LTV Steel from the integrated steel business.
#
Media Contact:
Bette Kovach
610-694-6308
Public Affairs Department
Bethlehem Steel Corporation
Return to News Releases
