STEEL INDUSTRY Legal battle for WCI's ownership still goes on

Closing arguments in the WCI bankruptcy case are set for Oct. 7.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
WARREN -- The one-year anniversary of WCI Steel's bankruptcy filing is about to pass without any resolution of who will own the steelmaker.
Two groups are continuing to wage a legal battle for ownership of WCI, which filed for bankruptcy protection Sept. 16, 2003.
The next scheduled bankruptcy court hearing is Oct. 7, when the steelmaker's parent company, Renco Group of New York, and its bondholders, who are owed $324 million, are to give closing arguments for their cases.
Bondholders' plan
The two groups have been at odds since bondholders filed their own plan to take over WCI. Bondholders said they would be shortchanged by Renco's plan. WCI officials had hoped to emerge from bankruptcy court as early as June, but the legal wrangling has continued.
Tim Roberts, a company spokesman, said mill operations haven't been affected by the court proceedings. For example, WCI received court permission to spend $15 million this summer to reline its blast furnace, a critical maintenance project.
Mike Rubicz, president of United Steelworkers of America Local 1375, said, however, that the delayed resolution of the case is wearing on workers.
"Many of the people here are frustrated," he said.
Retirement incentive
A new labor contract with Renco would allow 250 of the mill's 1,300 hourly workers to collect a $50,000 retirement incentive. Many workers are wondering if they will be able to collect the incentive and when it will come, Rubicz said.
The contract also would grant raises but reduce the number of job classifications for those remaining on the job. The union doesn't have a contract with the bondholders.
Rubicz said the uncertainty of the contract and ownership of the mill is distracting for workers and makes it hard for them to focus on their work.
Scheduled testimony in the bankruptcy court in Akron ended Friday. Over the past few weeks, witnesses have testified about the value of WCI and the rival plans.
Lawyers are to submit further legal briefs by Oct. 1.
Judge Marilyn Shea-Stonum can select Renco or the bondholders to take the company out of bankruptcy court, unless the two sides reach a compromise before her ruling. Also, a third bid for the company was filed last month by the New York-based partnership of D.E. Shaw and MIC Capital. That bid is expected to be considered if both of the other plans are rejected.
Key issues
G. Christopher Meyer, who represents WCI, said he was satisfied with the recent round of court testimony. Key issues include how to value collateral and claims in the plans, he said.
Thomas Moers-Mayer, who represents the bondholders, couldn't be reached for comment Monday.
shilling@vindy.com