WEIRTON STEEL Creditors offer $261.2 million

The bid is a counteroffer to ISG's bid of $255 million.
MORGANTOWN, W.Va. (AP) -- A group of creditors aiming to recoup their losses on bankrupt Weirton Steel Corp. offered $261.2 million for the company Tuesday, setting up a possible showdown Monday with Ohio's International Steel Group.
The Informal Committee of Secured Noteholders, collectively owed some $118 million, offered the minimum amount required to beat ISG's offer of $255 million.
The noteholders' bid is $138.74 million, $97 million of assumed liabilities and a credit bid of $25.5 million, said Tom Thompson of Imperial Capital LLC, an adviser to the group. The bid will be largely financed by Deutsche Bank Trust Company Americas and Deutsche Bank Securities Inc.
"The noteholders are excited about Weirton and its prospects and look forward to working with the company for many years," Thompson said in a news release issued late Tuesday.
"After a noteholder acquisition, the company would have a strong balance sheet and possess the financial resources to both re-invest in the existing facilities and to seek out new avenues of growth," he said. "Weirton's experienced and highly skilled work force -- and its position as the second largest tin producer in the U.S. -- provides the company with a great deal of confidence in meeting the challenges of today's steel industry."
Not a done deal
But Weirton Steel spokesman Gregg Warren cautioned that the noteholders have yet to be qualified for the auction. The bid was just received, and the company's lawyers will spend the next few days studying it, he said.
"There's no showdown unless we determine they're qualified to bid," he said.
Warren declined to say whether any other bidders met the court-imposed deadline to try to beat ISG's offer. Chief Executive Officer D. Leonard Wise said earlier in the day it would be inappropriate to identify bidders who have yet to be qualified.
Any potential bidders will be notified by Friday whether they can take part in the sale, where Weirton officials will decide what is the best and highest offer.
Wise said the company will announce its selection to the U.S. Bankruptcy Court after the auction in Pittsburgh, but he did not say exactly when. A hearing to finalize the sale is set for next Wednesday in Wheeling.
Possible bidder
Sun Capital Partners Inc., an investment firm based in Boca Raton, Fla., was identified as another prospective bidder earlier this week, but it was not immediately clear if it also submitted a bid. Officials there did not respond to telephone calls and e-mails from The Associated Press on Tuesday.
Weirton sought Chapter 11 shelter in May 2003 and has been operating under a debtor-in-possession loan from Fleet Capital Corp. Since March, Weirton has benefited from rising prices for hot band steel, selling off inventory, paying down its loan and increasing liquidity from about $10 million March 8 to $17 million as of Friday.
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