U.S. BANKRUPTCY COURT WCI Steel files reorganization plan that keeps Renco link

By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
WARREN -- WCI Steel has filed a reorganization plan with the United States Bankruptcy Court that, if approved, would allow the steelmaker to emerge from bankruptcy protection and continue to operate under its present owner, New York-based Renco Group.
The plan, subject to approval by the bankruptcy court and a vote of creditors and other stakeholders, spells out how WCI plans to reorganize its debts.
Union ratification of a tentative, 41/2-year contract agreement reached last week between WCI and United Steelworkers of America Local 1375 is also crucial for the plan to go forward, the company said in a press release Tuesday.
That agreement must be approved by WCI's 1,400 union-represented employees and by the bankruptcy court as part of the reorganization plan. It would take effect the day the company emerged from bankruptcy protection.
A company spokesman could not be reached to comment and WCI's attorney was also not available.
Creditors' plan
WCI's secured note-holders, creditors who hold $300 million of the company's long-term bonds, have also been circulating a copy of a reorganization plan proposal detailing how they planned to buy and operate the company.
They said USWA had also been in talks with them regarding a tentative contract, but they could not formally submit the plan to the court because WCI has that exclusive right, as the debtor, until mid-May.
WCI president Patrick G. Tatom said Tuesday, however, that the USWA "has pledged its support" for WCI's plan and will work with the company to obtain prompt approval from the bankruptcy court.
"This agreement is a significant milestone in our reorganization efforts and represents the strong commitment of The Renco Group to WCI's future," Tatom said.
Mike Rubicz, president of Local 1375, confirmed that the union is backing the company at this point. "I think the Steelworkers, because of the tentative contract being signed, is committed to working with WCI and Renco," he said.
"I'm pleased to see that they filed a plan because I know it's important for us coming out of bankruptcy as soon as possible."
Rubicz said informational meetings for union members and ratification voting won't be scheduled "for some time" because the international office of USWA has said it will take a number of weeks to put together brochures listing the contract details for members.
vinarsky@vindy.com