Status on Bethlehem Coke Works
Public Relations Division
Public Affairs Department
1170 Eighth Avenue
Bethlehem, PA 18016-7699
(610) 694-3711 - Phone
(610) 694-1509 - Fax
For Immediate Release
BETHLEHEM, Pa., February 24, 1998 — In response to inquiries on the status of Bethlehem's efforts to sell the Bethlehem Coke Division, the Company issued the following statement:
No offers have been received from qualified purchasers, and we regret the inaccurate reports that such offers have been either made or received.
Bethlehem announced on December 29, 1997 that even with substantial efforts to improve the performance of the Division, that the Division lost millions of dollars in 1997 and that such losses would continue in 1998. As a result, Bethlehem decided to discontinue the business by March 31, 1998. Bethlehem said it would make good faith attempts to sell the Division and would immediately prepare an Offering Memorandum for interested parties. Due to the complexity of the operations, there would have to be a qualified buyer who could demonstrate the ability to effectively and safely operate the facilities to ensure a viable business for years to come, and the financial ability to meet the obligations of the business. If efforts to sell the operation by March 31, 1998 were unsuccessful, Bethlehem said it would close the Division permanently.
Bethlehem requested that interested parties submit offers by February 15 and extended the date to February 20. For knowledgeable, experienced and qualified parties, this time period was considered sufficient to conduct due diligence in order to complete a sale by March 31.
There has been very limited interest in the Division and only five parties visited the facilities after reviewing the Offering Memorandum. Bethlehem provided inspection tours of the facility and appropriate financial information to these five parties to allow them to conduct their own due diligence and to submit an offer in accordance with Bethlehem's terms and conditions of sale.
No offers have been received by Bethlehem from any of the five parties who toured the facility as part of Bethlehem's efforts to sell the Division. Bethlehem's Coke Division continues to experience substantial losses, and Bethlehem said that it would therefore continue its plan to shut down the Division by March 31, 1998.
Bethlehem said it had issued the proper shutdown notices to employees and the community in accordance with its contractual and legal obligations. Bethlehem also said that it was providing training and outplacement services for affected employees, and that some employees might be eligible for job opportunities at other Bethlehem locations under the terms of an agreement with the United Steelworkers of America. Approximately 90 percent of the affected employees are eligible for pension and other benefits from Bethlehem.