WARREN Attorneys: Buyers plan to submit bids for CSC

A third buyer is waiting in the wings, says Rep. Traficant.
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
YOUNGSTOWN -- Attorneys representing financially troubled CSC Ltd. say they have two "serious" buyers who plan to bid on the Warren special steel bar mill.
Meanwhile, U.S. Rep. James A. Traficant Jr., of Poland, D-17th, said he's been in contact with another potential buyer.
"Let me be very clear: We don't have any offers yet," said Matthew Goldman, an attorney for the Cleveland law firm representing CSC in its Chapter 11 bankruptcy case in federal court here. "We do have two groups who now say they're thinking of making an offer."
Goldman said Wednesday that he's heard about the third prospect from Traficant's office staff but has no information about that prospective buyer. "There may be a third," he said.
CSC and its attorneys are not releasing the names or other details about prospective buyers, citing confidentiality agreements. Company spokesman Don Caiazza said he hasn't heard from Traficant about the newest prospect, but the company welcomes his involvement.
Caiazza has cautioned that it's not common for investors to check out several manufacturing facilities with plans to buy only one.
Auction: The company wants to sell the mill intact as a going concern, with hopes of preserving as many jobs as possible.
Goldman said the sale will be done at auction, with Judge William T. Bodoh of the U.S. Bankruptcy Court presiding, to assure that the company gets the highest and best bid for the plant. The names of all the bidders may never be revealed, however.
"If someone says to me that they only want their name made public if they're the successful bidder, I'm sure you understand, I'd rather have them bid," Goldman explained.
Visits: CSC officials have said that two prospective buyers have visited the plant. At least one also met with local and international officials from the United Steelworkers of America, which represents most of the company's 1,200 employees, and with officials from a federal agency that provides loan guarantees for steel mills.
CSC employees also voted earlier this month to investigate a worker buyout of the plant. A steering committee is expected to award contracts soon for a study of the feasibility of the proposal.
Traficant said in a press release that he's been talking with a prospect that "has extensive experience in the industry" and is completing necessary confidentiality agreements and other paperwork.
The congressman said the emergence of the latest buyer prospect "lends hope now to the ultimate sale of this state of the art facility, thus, not only maintaining the company, but maintaining the jobs."
Winding down: CSC is continuing to process, sell and ship its remaining steel inventory under a wind-down plan approved by Judge Bodoh that expires March 9.
Caiazza said about 350 hourly and salaried workers are still employed at the mill, and only the finishing, cold finish, thermal treatment and shipping departments are operating.
If the March 9 date arrives without a sale, he said, the company will probably ask the court to approve a six week "moth-balling" process during which the plant machinery would be prepared for long-term storage.