YOUNGSTOWN Lawmakers make desperate bid to save LTV
As time runs short, lawmakers scramble for money and clergy members turn to prayer.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
YOUNGSTOWN -- Federal and state legislators are trying to improve a rescue package for LTV Corp.
State Sen. Tim Ryan of Niles, D-32nd, said Monday that Democratic legislators from Northeast Ohio met and agreed to seek more state money for the cash-strapped steelmaker.
With a court hearing today on LTV's request to shut down its steel mills, Ryan said he remained hopeful but realized that time was growing short.
"We're running the two-minute drill now," he said.
State budget: Ryan said state legislators from Northeast Ohio intend to contact legislators in Columbus who are working on the state budget to see if money can be freed up for Cleveland-based LTV.
Ryan said he couldn't discuss an amount that they are seeking or what LTV would use the money for. The group, which is working with union officials, is looking into whether LTV could use the money for operating expenses, he said.
This money would be an addition to money for loan guarantees that have been offered by the state, Cleveland and Cuyahoga County.
LTV has applied for a guarantee under a federal program that would back 85 percent of a $250 million loan. Local and state money would guarantee 13 percent more.
Ryan said federal legislators from the Cleveland area intend to ask leaders in Congress "to keep the guarantee program in place so LTV has it as an option."
Prayer vigil: After Ryan's news conference, clergy members from the Cleveland and Youngstown areas started a 24-hour prayer vigil outside federal bankruptcy court.
"The goal is to get justice, keep hopes alive and keep the fires burning at LTV," said the Rev. Werner Lange of Auburn Community Church in suburban Cleveland.
Judge William Bodoh was to listen today to arguments on whether LTV should be allowed to shut down its steelmaking operations.
Vast impact: Besides steel mills in Cleveland, Illinois and Indiana, a shutdown would close LTV's coke plant in Warren, where about 200 people work. In total, about 7,500 people would lose their jobs.
In Youngstown, LTV/Copperweld Tubular Products, a subsidiary of LTV Corp., has an office and pipe plant that would continue operating. They employ a total of about 100 people.
LTV has been operating under the protection of bankruptcy court for a year but said last month that it doesn't have the customers to keep making steel.
Plan formed: The United Steelworkers of America and LTV's unsecured creditors have responded with a plan to keep the company going.
The proposal would allow LTV to cut costs by reducing wages, delaying pay raises and making changes to health insurance. The union and creditors hope the savings will be enough for LTV to receive financing, but U.S. Rep. Steve LaTourette, a Cleveland-area congressman, told The Plain Dealer that the agreement doesn't meet standards for receiving a guarantee.
The shutdown would end the health insurance and pension benefits of thousands of people, including about 6,000 in the Mahoning Valley. The federal Pension Benefit Guaranty Corp. said it would take over payments if LTV's pension plan is terminated.
shilling@vindy.com