LTV CORP. Steelmaker seeks OK to continue operating

The steelmaker says lenders are willing to provide $700 million in financing.
YOUNGSTOWN -- LTV Corp. is seeking court approval for financing that will allow it to continue normal operations.
The Cleveland-based steelmaker said Monday that it filed a motion in U.S. Bankruptcy Court in Youngstown to allow it to receive the $700 million.
"We are now positioned to focus on restructuring LTV's integrated steel operations and take other actions needed to put this company on a strong, competitive footing for the future," said William Bricker, LTV chairman and chief executive.
LTV filed for protection from creditors in the Youngstown court in December. It said at the time that it was close to shutting down all its operations until it received interim financing from a group of lenders led by Chase Manhattan Bank. It had been negotiating with lenders since then over long-term financing.
Number of employees: LTV employs 17,000 people, including 200 at a coke mill in Warren, 80 at a pipe mill in Youngstown and 40 at an office for its tubular products division in Youngstown.
LTV said its new financing will allow it to continue normal operation of its business and keep the confidence of customers, suppliers and creditors.
Bricker said the company will seek changes to its operations that will improve its long-term health.
The new financing includes a loan and letters of credit totaling about $600 million from lenders led by Chase and Abbey National Treasury Services.
Also included is $100 million in loan and revolving credit agreements that were arranged by Ableco Finance.
The credit facilities are to mature on June 30, 2002, or when a reorganization is substantially complete, whichever comes first.
The company said in court documents that it ran out of money to operate because of declining orders and a slowdown in the automotive and appliance industries.