WCI STEEL Judge expected to OK reorganization plans

Details on the voting procedure and schedule should also be released.
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
AKRON -- Judge Marilyn Shea-Stonum was expected to file orders in United States Bankruptcy Court here today approving two rival plans for reorganizing WCI Steel.
The judge also planned to approve balloting procedures for the creditors who will vote on what direction WCI's future should take.
WCI wants to reorganize its debts and continue operating the steel mill with continued backing from its parent company, New York-based Renco Group.
Under the company's plan, Renco would contribute $35 million in new money and would assume ultimate responsibility for WCI's pension plan should the company be unable to afford its cost.
WCI's current management team would remain largely intact under the plan, except for Ed Caine, chief restructuring officer and former president, who would retire from his restructuring position but would remain as vice chairman of the board of directors.
Another plan
A group of creditors, which together hold $324 million of WCI's bonds secured by its property, plant and equipment, also wants to buy and operate the mill.
The bondholders would invest an additional $40 million in WCI, but they would not assume responsibility for the pension plan, maintaining that obligation remains with Renco.
Information about both plans and ballots will be mailed to creditors if the judge determines that both plans provide adequate information, are viable and lawful.
A confirmation hearing, at which the judge will learn results of the vote and will consider confirming a plan, is set for July 21-22.
The company's plan has the backing of the United Steelworkers of America, which represents about 1,330 WCI hourly employees. USWA Local 1375 has agreed to a tentative bargaining agreement with WCI, a key strength in the company's plan because the bondholders do not have a negotiated agreement with the union.
Members of Local 1375 can expect to get details on the proposed agreement in the mail next week. Informational meetings are set for 10 a.m. and 4 p.m. June 28, departmental meetings will be scheduled daily after that and members will vote on the pact July 15.
Based in Warren, WCI is the Mahoning Valley's largest industrial employer, with 1,750 workers. It filed for Chapter 11 bankruptcy protection in September, and officials have said they want to emerge from bankruptcy in July.
vinarsky@vindy.com