The LTV Corporation Files for Chapter 11 Reorganization; Entire U.S. Steel Industry Threatened by Foreign Steel Imports

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The LTV Corporation Files for Chapter 11 Reorganization; Entire U.S. Steel Industry Threatened by Foreign Steel Imports
    CLEVELAND, Dec. 29 /PRNewswire/ -- The LTV Corporation (NYSE: LTV)
announced today that the Company and 48 of its wholly owned subsidiaries have
filed voluntary petitions for reorganization under Chapter 11 of the United
States Bankruptcy Code.  In its petitions, filed in the U.S. Bankruptcy Court
in the Northern District of Ohio, Eastern Division in Youngstown, LTV
attributed the need to reorganize to a weakening U.S. economy and the inaction
of the government in enforcing long-established U.S. trade laws.  LTV said
that unfairly priced imports have driven steel prices to 20-year lows.  The
situation has become so serious, the Company warned in papers filed with the
petitions, that without adequate financing, it may be necessary to immediately
shut down all of its integrated steel and metal fabrication plants, layoff all
of its 18,000 employees and begin to sell core assets.
    "This doomsday scenario, however, doesn't need to happen," said William H.
Bricker, LTV chairman and chief executive officer.  Mr. Bricker said that he
is confident that, if reorganization financing measures can be arranged to
keep LTV's businesses in operation, the Company can survive, restructure and
succeed.  Mr. Bricker said that discussions to obtain such financing are
continuing.  "We are a tough, determined Company, but our industry has changed
dramatically in recent months," Mr. Bricker said.  "We seek only the time and
financial resources to adjust to these changes."
    Mr. Bricker said LTV must reduce its fixed costs in today's weakened
economic environment to compete successfully.  In fact, he said, the Company
is well along in developing a business plan that will accomplish these goals.
He repeated, however, that the Company cannot implement this plan without the
financial support of lenders and the political resolve of government.
    "We ask only that our government do its job by enforcing the law and we'll
do ours by making the changes needed to succeed in the new steel market," Mr.
Bricker said.  "LTV and its employees across the nation have been betrayed by
the government's reluctance to take action against the "dumping" of unfairly
priced steel in the U.S. market by foreign competitors.  How many more U.S.
steel companies must be driven into bankruptcy before the government acts?"
    Mr. Bricker added, that if LTV were to shutdown, the impact would reach
far beyond the Company's immediate employees and customers to encompass
70,000 retirees and their families who are now dependent on a variety of
Company paid insurance benefit and pension programs.  LTV spends about
$200 million annually to provide healthcare and other insurance benefits.
    "We are aware of our responsibility to our retirees and employees under
these programs, but we simply do not have the cash to support them," Mr.
Bricker said.  "The high fixed cost of these programs places LTV at a severe
competitive disadvantage in the new global steel market.  But we are confident
that, given time, LTV can develop a permanent solution to these problems with
the cooperation of the government, the steelworkers, and the financial
community."  Mr. Bricker praised the cooperation of the United Steelworkers of
America which is working with LTV in its efforts to restructure.
    According to Mr. Bricker, LTV is already moving on other key fronts to
allow a successful reorganization and to protect the interests of its
employees and retirees.  Those actions include:

    -- Exploring alternative ways to maintain healthcare benefit programs for
       employees and retirees;

    -- Working with legislators to secure emergency government loan
       guarantees;

    -- Forming a taskforce of Company, union, government, employees and
       retiree representatives to explore options for saving the Company; and

    -- Issuing urgent requests to both the Clinton and Bush administrations to
       initiate action to restrain all unfairly traded foreign steel imports.

    "The entire U.S. steel industry is at risk," said Mr. Bricker. "Every
integrated steel company in America carries an enormous burden for our country
by providing healthcare and benefit programs for millions of Americans and
their families.  The impact of unfairly traded foreign steel threatens the
continued existence of America's most basic and indispensable industries.
America is in danger of becoming as dependent on foreign steel as we are on
foreign oil.  This is certainly not in the best interest of our nation," Mr.
Bricker said.
    The LTV Corporation is a manufacturing company with interests in steel,
metal fabrication and leading steel technologies.  LTV's Integrated Steel
segment is a leading producer of high-quality, value-added flat rolled steel,
and a major supplier to the transportation, appliance, electrical equipment
and service center industries.  LTV's Metal Fabrication segment consists of
LTV Copperweld, the largest producer of tubular and bimetallic products in
North America, and VP Buildings, a leading producer of pre-engineered metal
buildings for low-rise commercial applications.

    Contacts:  News Media, Mark R. Tomasch, 216-622-4635; or Financial
Community, John C. Skurek, 216-622-4600, or Frank A. Cibrone, 216-622-4656.

    This press release includes forward-looking statements.  Our uses of the
words "outlook," "anticipates," "believes," "estimate," "expect" and similar
words are intended to identify these statements as forward looking.   These
statements represent our current judgment on what the future holds.  While the
Company believes them to be reasonable, a number of important factors could
cause actual results to differ materially from those projected.  These factors
include relatively small changes in market price or market demand; changes in
domestic capacity; changes in raw material costs; increased operating costs;
loss of business from major customers, especially for high value-added
product; unanticipated expenses; substantial changes in financial markets;
labor unrest; unfair foreign competition; major equipment failure;
unanticipated results in pending legal proceedings; difficulties in
implementing information technology; and other factors.
SOURCE The LTV Corporation
http://www.ltvsteel.com
CONTACT:
News Media, Mark R. Tomasch, 216-622-4635; or
Financial Community, John C. Skurek, 216-622-4600, or Frank A.
Cibrone, 216-622-4656, all for The LTV Corporation