Bethlehem Logo
Bethlehem Steel Corporation
Corporate Communications Division
Public Affairs Department
1170 Eighth Avenue
Bethlehem, PA 18016-7699
(610) 694-3711 - Phone
(610) 694-1509 - Fax
Internet Homepage Address
http://www.bethsteel.com
FOR IMMEDIATE RELEASE
BETHLEHEM STEEL FILES VOLUNTARY PETITION UNDER CHAPTER 11
OF UNITED STATES BANKRUPTCY CODE
o Company Receives $450 Million Loan Commitment to Meet Ongoing
Operating Needs
o Operations and Customer Service to Continue without
Interruption
BETHLEHEM, Pa. - October 15, 2001 - Bethlehem Steel Corporation (NYSE:
BS), the second-largest integrated steel manufacturer in the nation, announced
today that it has filed a voluntary petition under Chapter 11 of the Federal
Bankruptcy Code in the United States Bankruptcy Court for the Southern District
of New York. Despite nearly $300 million in net cost reductions since the middle
of 1998, the Company could not overcome the injury caused by record levels of
unfairly traded steel imports and the slowing economy that have severely reduced
prices, shipments and production. Since mid-1998, Bethlehem's revenues have been
reduced over this same period by approximately $1.3 billion annually. The
resulting operating losses of approximately $500 million and negative cash flow
since the middle of 1998 have severely impaired the Company's financial
condition.
The entire domestic steel industry is suffering from the onslaught of
record steel imports since 1998, resulting in over 20 prior bankruptcy filings.
The events of September 11 have contributed to a further weakening in demand for
consumer products that rely on steel, such as automobiles, appliances and new
homes, and to a worsening outlook for our near-term performance.
Bethlehem is seeking protection under Chapter 11 to provide the
necessary time to stabilize the Company's finances and to develop and implement
a strategic plan to return Bethlehem to sustained profitability. Key objectives
of the plan will include improving the Company's capital structure, working with
the United Steelworkers of America (USWA) to improve productivity and further
reduce costs, particularly employment and healthcare costs, and finding a
solution to its approximate $3-billion retiree healthcare obligation. While in
Chapter 11, Bethlehem will continue to work with the federal government to
remedy unfair trade practices, reduce excess global steel capacity and foster
domestic steel industry consolidation.
The Company has secured a loan commitment for $450-million
Debtor-in-Possession (DIP) financing from GE Capital, subject to Court approval.
This financing package, combined with other actions, should provide sufficient
liquidity to meet ongoing operating needs. During these restructuring
proceedings, Bethlehem will continue steel production without interruption with
the same level of commitment to superior quality and service to our valued
customer base. The Company's key supplier relationships remain intact and the
continued support of the supply base is essential to the development of a
successful Plan of Reorganization.
"This step is imperative to preserve not only the Company's future, but
also the future of our workforce. Working together with the USWA and government,
management intends to take full advantage of the opportunities afforded by the
Chapter 11 process to return Bethlehem to sustained profitability," said Robert
S. Miller, Jr., chairman and chief executive officer of Bethlehem Steel
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Corporation. "Our employees have demonstrated their support to get us through
these difficult times. We appreciate their continued loyalty and contributions."
Mr. Miller continued, "Bethlehem has made considerable progress in
reducing its costs and meeting customers' increasing demand for high quality
products. However, we need to do more. Chapter 11 does not solve our problems.
It provides us a process and framework within which we can address and explore
the significant issues facing the Company. The cooperation of the USWA is
essential to increase productivity by establishing more flexible work practices
and to implement new initiatives to significantly reduce our healthcare
obligations. Discussions with the USWA have already begun. Aggressive
company-wide cost reduction initiatives are underway and we are also developing
plans to further reduce our total workforce by January 2002. Reducing our costs
and strengthening our balance sheet will allow Bethlehem to make the necessary
investments in our facilities to remain a leader in the steel industry."
Beyond these self-help measures, Bethlehem will seek government
assistance through strict enforcement of our trade laws including a successful
conclusion of the Section 201 trade case now before the International Trade
Commission. In addition, Bethlehem will explore participation in the necessary
consolidation of the highly fragmented domestic steel industry, and will look
for solutions to the retiree healthcare issue. Government assistance and support
will be required if we are to reestablish a vibrant and healthy domestic steel
industry.
Mr. Miller concluded, "There is much hard work ahead to restore the
Company to a position of financial viability. One thing is clear, our national
security and our economy depend upon a sound and productive American steel
industry, and Bethlehem is determined to be an integral part of the future of
our industry."
3
About Bethlehem Steel Corporation:
Bethlehem Steel Corporation is the nation's second largest integrated
steel producer with revenues of about $2.6 billion and shipments of 6.1 million
tons of steel products for the first nine months of 2001.
Founded in 1904 by Charles M. Schwab, Bethlehem Steel Corporation
traces its origins to the Saucona Iron Company, which was established in 1857 in
Bethlehem, Pa. Later renamed the Bethlehem Iron Company, this single plant
became the nucleus around which the modern Bethlehem Steel Corporation was
formed.
For 97 years, Bethlehem Steel has provided the steel to build,
transport and defend America. Its products have produced enduring structures
such as the Golden Gate Bridge, U.S. Supreme Court Building, Chicago's
Merchandise Mart and much of the New York City skyline. A major producer of
armaments for the military, Bethlehem Steel's workforce in World War II numbered
about 300,000. In addition to its steel plants, Bethlehem had shipyards on both
U.S. coasts that delivered a ship a day (1,121 in total) to the Allied war
effort. The Company's support of the military continues today as it was the sole
supplier of armor plate steel for the repair of the USS Cole.
Bethlehem Steel currently employs about 13,000 and provides benefits to
about 130,000 individuals. The Company produces a wide variety of steel mill
products including hot-rolled, cold-rolled and coated sheets, tin mill products,
carbon and alloy plates, rail, specialty blooms, carbon and alloy bars, and
large diameter pipe. Its principal markets include automotive, construction,
machinery and equipment, appliance, container, service center, rail and energy.
Bethlehem Steel's principal operations include the Burns Harbor
Division, located 40 miles southeast of Chicago on the shores of Lake Michigan
in Burns Harbor, Ind.; the Sparrows Point Division located on the Chesapeake Bay
near Baltimore, Md.; and Pennsylvania Steel Technologies located in Steelton,
Pa., just south of Harrisburg. The Sparrows Point Division also operates
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steelmaking and plate operations in Coatesville and Conshohocken, Pa. Burns
Harbor's operations include a galvanizing mill in Lackawanna, N.Y., located just
south of Buffalo. Bethlehem also has iron ore, lake shipping and trucking
operations and operates eight shortline railroads.
Safe Harbor:
Certain statements in this release are forward-looking statements within the
meaning of the Private Securities Reform Act. Actual results may differ
materially from those indicated in such statements due to a number of factors,
including challenges arising from Bethlehem Steel's Chapter 11 filing, changes
in consumer spending patterns and in demand for steel products. Additional
factors that may affect the business and financial results of Bethlehem Steel
are the effect of planned and unplanned outages on Bethlehem Steel's operations;
the potential impact of strikes or work stoppages at facilities of Bethlehem
Steel's customers and suppliers; the sensitivity of Bethlehem Steel's results to
relatively small changes in the prices obtained by Bethlehem Steel for its
products; intense competition due to world steel overcapacity, low-cost electric
furnace facilities, unfairly-traded imports and substitute materials; the
consolidation of many of Bethlehem Steel's customers and suppliers; the high
capital requirements associated with integrated steel facilities; the
significant costs associated with environmental controls and remediation
expenditures and the uncertainty of future environmental control requirements;
availability and prices associated with raw materials, supplies, utilities and
other services and items required by Bethlehem Steel's operations; employment
matters, including costs and uncertainties associated with Bethlehem Steel's
collective bargaining agreements, and employee postretirement obligations; the
effect of possible future closure or exit of businesses; Bethlehem Steel's
highly leveraged capital structure and its ability to obtain new capital at
reasonable costs and terms; financial difficulties encountered by joint venture
partners; and the effect of existing and possible future lawsuits against
Bethlehem Steel. The forward-looking statements included in this document are
based on information available to Bethlehem Steel as of the date of this
release, and Bethlehem Steel assumes no obligation to update any of these
statements.
#
For More Information:
---------------------
Media Contact: Steve Donches - 610-694-3470
Bette Kovach - 610-694-6308
Investor Contact: Blaise Derrico - 610-694-4583
Jeff Faloba - 610-694-2206
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Exhibit 99.2
WEIL, GOTSHAL & MANGES LLP
Attorneys for the Debtors
767 Fifth Avenue New York,
New York 10153
(212) 310-8000
Harvey R. Miller (HM 6078)
Jeffrey L. Tanenbaum (JT 9797)
George A. Davis (GD 2761)
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
-----------------------------------x
In re : Chapter 11 Case Nos.
:
Bethlehem steel Corporation, : 01-____ (____) through
et al. : 01-____ (____)
:
Debtors. : (Jointly Administered)
:
-----------------------------------x
AFFIDAVIT OF LONNIE A. ARNETT
PURSUANT TO LOCAL BANKRUPTCY RULE 1007-2
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
Lonnie A. Arnett, being duly sworn, deposes and says:
1. I am Vice President, Controller and Chief Accounting Officer of Bethlehem
Steel Corporation ("BSC"), a corporation organized under the laws of the State
of Delaware and one of the debtors and debtors-in-possession in the
above-captioned cases (BSC and the other debtors, collectively, the "Debtors").1
1 BSC is the direct or indirect corporate parent of the other Debtors, which
are: Alliance Coatings Company, LLC, Bethenergy Mines Inc., Bethlehem Cold Roll
Corporation, Bethlehem Development Corporation, Bethlehem Rail Corporation,
Bethlehem Steel de Mexico, S. de C.V., Bethlehem Steel Export Company of Canada,
Limited, Bethlehem Steel Export Corporation, BethPlan Corporation, Chicago Cold
Rolling, LLC, Eagle Nest Inc., Encoat-North Arlington, Inc., Energy Coatings
Company, Greenwood Mining Corporation, HPM Corporation, Kenacre Land
Corporation, L I Service Company, Marmorton Mining Company, Ltd., Mississippi
Coatings Limited Corporation, Mississippi Coatings Line Corporation, Ohio Steel
Service Company, LLC and Primeacre Land Corporation.
I have been an employee of BSC since 1984, and I was elected vice president and
controller in 1986. In addition to the traditional controllership
responsibilities for financial and cost accounting analysis, my responsibilities
also include tax, internal audit, employee benefit plan accounting and
employment cost analysis. I am intimately familiar with the day-to-day
operations, business and financial affairs of BSC and of its direct and indirect
subsidiaries and affiliates, including the other Debtors.
2. On the date hereof (the "Commencement Date"), each of the
Debtors filed a voluntary petition under chapter 11, title 11 of the United
States Code (the "Bankruptcy Code"). I am authorized to submit this affidavit in
support of the Debtors' petitions for chapter 11 relief under the Bankruptcy
Code.
3. A description of the nature of Debtors' business and
statements regarding the circumstances leading to the commencement of these
chapter 11 cases are set forth below.
4. To the best of my knowledge, information and belief, no
committee of creditors or equity security holders has been organized prior to
the Commencement Date.
5. Pursuant to Fed. R. Bankr. P. 1007(d) and Local Bankruptcy
Rule 1007-2, set forth on Schedule 1 hereto is a list of the names, addresses
and, where available, telephone numbers of the Debtors' creditors, excluding
insiders, holding the thirty (30) largest unsecured claims. Such list includes
the amount of the respective claim, the nature of the claim (e.g. trade debt or
2
institutional debt) and, if appropriate, an indication whether such claim is
contingent, unliquidated, disputed or partially secured, subject, however, to
certain reservations of rights stated on Schedule 1 regarding, inter alia, the
amount, nature, validity, contingent nature and value of security of any such
claims.
6. Set forth on Schedule 2 hereto is a list of the names and
addresses of the Debtors' five largest secured creditors. Such list includes the
amount of each claim, a brief description and an estimate of the value of the
collateral securing the claim (if available), and whether the claim or lien is
disputed, subject, however, to certain reservations of rights stated on Schedule
2 regarding, inter alia, the amount, nature, validity, contingent nature and
value of security of any such claims.
7. Set forth on Schedule 3 hereto is a summary of the
consolidated assets and liabilities of the Debtors and their wholly-owned or
majority-owned non-debtor subsidiaries and affiliates (the "Non-Debtor
Affiliates"2 and collectively with the Debtors, the "Bethlehem Companies") as of
September 30, 2001. Unless otherwise indicated, the financial information
2 The Non-Debtor Affiliates are Bethlehem Steel Credit Affiliate One, Inc.,
Bethlehem Steel Credit Affiliate Two, Inc., Bethelehem Steel Funding, LLC,
Cambria and Indiana Railroad Co., Conemaugh & Black Lick Railroad Co., Patapsco
& Back Rivers Railroad Co., Brandywine Valley Railroad Co., Upper Merion &
Plymouth Railroad Co., Keystone Railroad Inc., Lake Michigan & Indiana Railroad
Co. LLC, Bethtran, Inc., Carrier Express, Inc., Beth Intermodal Inc., RailQuest
LLC, Steelton & Highspire Ralroad Co., Bethlehem Hibbing Corp., Ontario Iron
Co., Hibbing Development Co., Hibbing Taconite Co., Hibbing Land Corp., IPV,
Inc., Bethlehem Blank Welding, Inc., EGL Steel Co., Inc., Bethlehem Steel
International Corp., Bethlehem Roofing Co., LLC, Interocean Shipping Co.,
Bethlehem Energy Services, Inc., Bethlehem Industries Corp., Pennsylvania Steel
Technologies, Inc., Bethlehem Steel Foundation, and Twincast Property Leasing,
Inc.
3
contained herein is unaudited and provided on a consolidated basis for BSC and
its consolidated subsidiaries.
8. Set forth on Schedule 4 hereto is a list of the number and
classes of stock, debentures and other securities of BSC that are publicly held.
Schedule 4 also includes, if applicable, the number of shares held by BSC's
executive officers and directors and the amounts so held. No shares of stock,
debentures or other securities of the other Debtors are publicly held.
9. To the best of my knowledge, the Debtors do not have any
property that is in the possession or custody of any custodian, public officer,
mortgagee, pledgee, assignee of rents, or secured creditor or agent for any such
entity other than (i) bank accounts which may be subject to control agreements
or claims of setoff, (ii) certain letters of credit and stocks pledged to and
held by creditors to secure certain obligations, (iii) inventory at consignees,
warehouses and processors, and (iv) vendor and supplier deposits.
10. Set forth on Schedule 5 hereto is a list of the premises
owned, leased, or held under other arrangement, from which the Debtors operate
their business.
11. Set forth on Schedule 6 hereto is a list of the locations
of the Debtors' substantial assets, including the location of their books and
records, in the United States. Schedule 6 also includes, if applicable, the
nature, location, and value of material assets (if the estimated value is known)
held by the Debtors outside the territorial limits of the United States.
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12. To the best of my knowledge, there are no actions or
proceedings, pending or threatened, against the Debtors or their property where
a judgment against the Debtors or a seizure of their property is imminent.
13. Set forth on Schedule 7 hereto are the names of the
individuals who comprise the Debtors' existing senior management, their tenure
with the Debtors and a brief summary of their relevant responsibilities and
experience.
14. The Debtors intend to continue operating their businesses
and managing their properties as debtors-in-possession pursuant to sections
1107(a) and 1108 of the Bankruptcy Code. Set forth on Schedule 8 hereto is the
estimated amount of the payroll to be paid to employees of the Debtors
(exclusive of officers, directors and stockholders) for the thirty-day period
following the Commencement Date.
15. Set forth on Schedule 9 hereto are the amounts to be paid
to the Debtors' officers, directors, stockholders and business consultants for
services for the thirty-day period following the Commencement Date
16. Set forth on Schedule 10 hereto are the Debtors' estimated
consolidated cash receipts and disbursements, and net cash gain or use, for the
thirty-day period following the Commencement Date.
17. In addition to the foregoing information, the Debtors will
be filing with the Court a consolidated list containing the names and addresses
of their known or potential creditors.
5
Nature Of Debtors' Business And Statement Of
Circumstances Leading To Debtors' Chapter 11 Filings
Business Operations
18. Founded in 1904 by Charles M. Schwab, BSC traces its
origin to a small company, the Saucona Iron Company, formed in 1857 in South
Bethlehem, Pennsylvania. Later renamed the Bethlehem Iron Company, this single
plant became the nucleus around which the modern BSC was established.
19. BSC, together with its directly and indirectly owned
subsidiaries and affiliates, is the second largest integrated steel producer in
the United States. BSC manufactures and sells a wide variety of steel mill
products, which include hot-rolled, cold-rolled and coated sheets, tin mill
products, carbon and alloy plates, rails, specialty blooms, carbon and alloy
bars and large-diameter pipes. BSC's principal markets include service centers,
automotive, construction, machinery and equipment.
20. The principal operations of BSC comprise of three
divisions - Burns Harbor, Sparrows Point, and Pennsylvania Steel Technologies.
The Burns Harbor Division operates facilities in Indiana on Lake Michigan and in
Lackawanna, New York on Lake Erie. The Sparrows Point Division operates a
facility on Chesapeake Bay near Baltimore, Maryland and two facilities in
Coatesville and Conshohocken, Pennsylvania. Sales of products produced at the
Burns Harbor and Sparrows Point Divisions, primarily steel sheets and plates,
generated approximately 95% of the revenues of BSC and its consolidated
subsidiaries for the nine months ended September 30, 2001. The Pennsylvania
Steel Technologies Division, the nation's largest rail producer and a maker of
6
specialty blooms, carbon and alloy bars and large diameter pipes, operates a
facility in Steelton, Pennsylvania.
21. In addition to BSC's steel production and manufacturing
facilities, the Debtors (i) own former industrial sites and redevelop, market
and sell such sites as commercial, industrial, light industrial and mixed-use
properties, (ii) operate, through affiliates, eight shortline and switching
railroads and trucking and intermodal facilities and provide logistic services,
(iii) have residual interests in formerly owned or operated plants and
facilities, (iv) participate in a number of joint ventures, partnerships and
limited liability companies that own and operate iron ore mines and reserves,
sheet metal coating and processing facilities, metal product fabrication
facilities, heavy machinery and rolling mill grinding facilities, and clinics
for providing healthcare services to employees and retirees, (v) own non-active
or undeveloped coal mines and coal reserves in Pennsylvania, West Virginia and
Kentucky, and (vi) operate Great Lakes ore carrying vessels.
22. For the fiscal year ended December 31, 2000, BSC and its
consolidated subsidiaries3 reported net sales of approximately $4.2 billion and
net losses of approximately $118 million. As of September 30, 2001, BSC and its
consolidated subsidiaries reported total assets of approximately $4.2 billion
and total liabilities of approximately $4.5 billion. For the nine months ended
September 30, 2001, BSC and its consolidated subsidiaries reported net sales of
approximately $2.6 billion and a net loss of approximately $1.4 billion.
3 The financial information contained herein may include financial accounts of
certain of the Non-Debtor Affiliates.
7
23. The Debtors currently have approximately 13,200 employees,
about 80% of whom are covered by one master collective bargaining agreement and
a number of plant specific agreements and settlement agreements with the United
Steel Workers of America.
24. The Debtors sponsor several tax-qualified noncontributory
defined benefit pension plans that provide benefits for substantially all of the
employees. The Debtors fund annually the minimum amount required by the Employee
Retirement Income Security Act of 1974, as amended, plus additional amounts as
appropriate based on their liquidity and business outlook. The Debtors also
provide other post-employment benefits ("OPEB") for healthcare and life
insurance to most retirees and their dependents, and to surviving spouses of
many deceased employees and retirees. In 2000, after using trust funds of about
$64 million, BSC and its consolidated subsidiaries paid directly $130 million in
OPEB benefits. The projection for 2001, after using trust funds of about $28
million, is that BSC and its consolidated subsidiaries will directly pay out
about $175 million in OPEB benefits. BSC and its consolidated subsidiaries
estimate that their direct 2002 cash requirements for OPEB benefits will be in
the range of $205 million to $215 million. Using September 30, 2001 market
values and interest rates, BSC estimates that the unfunded OPEB and pension
obligations are approximately $3 billion and $1.85 billion, respectively, which
increases BSC's total liabilities, on a pro forma basis, to approximately $6.75
billion.
8
Principal Debt Obligations, Contingent Liabilities and Other Commitments
25. As a result of significant borrowings, the Debtors'
capital structure is highly leveraged. The indebtedness with respect to the
major credit facilities, secured financing arrangements, capital leases, notes,
bonds and debentures are described below:
o Inventory and Receivable Credit Facilities. BSC has a
credit arrangement with a group of 15 domestic and
international banks for $660 million, $150 million of
which can be used for letters of credit. The
arrangement consists of (i) a $340 million
receivables sale/purchase facility through a
wholly-owned special purpose subsidiary of BSC,
pursuant to which the banks purchase from such
subsidiary, at discounts based on defined short-term
interest rates, the receivables of BSC sold by BSC to
such subsidiary, and (ii) a $320 million secured
revolving credit facility, pursuant to which the
Debtors' inventory is pledged as collateral to secure
the borrowings and letters of credit. As of the
Commencement Date, approximately $290 million of
borrowing was outstanding under the revolving credit
facility.
o Sparrows Point cold mill complex equipment financing.
Pursuant to that certain secured credit agreement,
dated September 29, 2000, as amended, between BSC, as
borrower, and RZB Finance LLC, as lender, BSC
borrowed approximately $50 million. The obligations
under this loan are secured by various equipment
located at the Sparrows Point cold mill. As of the
Commencement Date, the outstanding principal amount
of this secured loan was approximately $46 million.
o Sparrows Point wide slab caster transaction. Pursuant
to that certain equipment lease, dated September 29,
2000, between BSC, as lessee, and First Security
Bank, as owner trustee, BSC leases certain slab
casting equipment which has been previously sold by
BSC to the lessor. The net present value of future
payments is approximately $46.8 million.
o M/V Cort Bareboat Charter. Pursuant to that certain
Bareboat Charter Party, dated December 28, 2000, as
amended, between BSC, as charterer and BSC 2000
Trust, as owner, BSC leases under a long term charter
the M/V Stewart J. Cort, an ore vessel. The net
present value of future payments is approximately
$26.8 million.
9
o M/V Burns Harbor Bareboat Charter. Pursuant to that
certain Bareboat Charter Party, dated September 15,
1980, as amended, between BSC, as charterer, and
Wilmington Trust Company, as owner trustee, BSC
leases under a long term charter the M/V Burns
Harbor, an ore vessel. The net present value of
future payments is approximately $10.8 million.
o 10-3/8% Senior Notes Due 2003. Pursuant to that
certain indenture, dated as of September 1, 1993, as
amended, BSC issued unsecured notes in the principal
amount of $105 million to investors. The Senior Notes
contain covenants that impose certain limitations on
BSC's ability to incur or repay debt, to pay
dividends and make other distributions on or redeem
capital stock, or to sell, merge, transfer or
encumber assets.
o 7-5/8% Notes Due 2004. Pursuant to that certain
supplemental indenture, dated as of May 29, 1998, BSC
-- as successor corporation in the merger of Lukens
Inc. ("Lukens") and BSC -- assumed Lukens'
obligations with respect to the unsecured notes
issued to investors in 1992 by Lukens in the
principal amount of $150 million.
o 6-1/2% Notes Due 2006. Pursuant to that certain
indenture, dated as of July 1, 1992, Lukens, as
predecessor to BSC, issued unsecured notes in the
principal amount of $75 million to investors.
o 8.45% Debentures Due 2005. Pursuant to that certain
indenture dated as of March 1, 1975, as amended, BSC
issued unsecured debentures in the principal amount
of $250 million to investors. As of the Commencement
Date, the principal amount outstanding under these
debentures was approximately $74 million.
o Pollution Control or Industrial Revenue Bonds.
Pursuant to separate loan agreements relating to
solid waste disposal facilities and pollution control
facilities with The Town of Burns Harbor, The
Northampton County Industrial Development Authority,
The Cambria County Industrial Development Authority
and Baltimore County, BSC is the obligor with respect
to five issuances of revenue bonds. As of the
Commencement Date, the aggregate principal amount
outstanding under these revenue bonds was
approximately $129 million.
o Chicago Cold Rolling Debt. Chicago Cold Rolling, LLC
("CCR") is a wholly-owned subsidiary of BSC. Pursuant
to the term loan guaranty by BSC in favor of
Nationsbank (now Bank of America), BSC guaranteed
CCR's repayment obligation under the term loan which,
as of the Commencement Date, has an outstanding
principal amount of approximately $18 million.
10
26. Apart from significant debt obligations, BSC has
considerable contingent liabilities arising in connection with guarantees it
executed in favor of certain lenders to several joint ventures in which BSC
(through its wholly-owned subsidiaries) is a joint venture partner, the
principal ones are discussed below:
o Columbus Coatings Guaranty. The LTV Corporation
("LTV") is a partner of BSC in several joint
ventures, including Columbus Coatings Company
("CCC"). CCC's construction loan was financed in part
with a loan under a 1999 agreement that contemplated
a long-term sale and leaseback during 2001. The loan
was jointly and severally guaranteed by both BSC and
LTV. Due to LTV's chapter 11 filing in December 2000,
the lender (Columbus Steel Facility, LLC) is no
longer obligated to make any further loan advances,
and has the right to seek repayment of the loan from
the guarantors. As of the Commencement Date, the
unpaid principal amount of the loan plus accrued
interest was approximately $117 million.4
o Double G Coatings Guaranty. National Coating Ltd.
Corp. is a 50% joint venture partner of BSC with
respect to Double G Coatings, Co. LP ("Double G
Coating").5 Pursuant to the guaranty in favor of
Mitsubishi Corp., The Foothill Group (as successor to
Nissho Iwai Corp.) and Okura & Company, BSC
guaranteed Double G Coating's repayment obligation
under the term loan. As of the Commencement Date,
BSC's obligation under the guaranty was approximately
$13.6 million.
o Bethlehem Roll Technology Guaranty. C.H. Maryland,
Inc. is a 50% joint venture partner of BSC with
respect to Bethlehem Roll Technologies, LLC. Pursuant
to that certain limited guaranty and suretyship
agreement executed by BSC in favor of PNC Bank, BSC
guaranteed the joint venture's repayment obligation
under the PNC term loan which, as of the Commencement
4 Pursuant to an agreement with the CCC lender dated June 29, 2001, BSC (a)
agreed to obtain (and was able to obtain) the consent of the letter of credit
issuer to extend the expiration date of a $30 million letter of credit to March
1, 2002 as collateral for its guaranty (which would have otherwise expired on
June 30, 2001) and (b) gave the lender a first mortgage lien on the company's
corporate headquarters building to secure the obligations under the guaranty.
5 BSC holds an aggregate 50% direct and indirect interests in Double G Coatings.
11
Date, has an outstanding principal amount of
approximately $1.75 million.
27. In addition to hefty debt obligations, joint venture
guaranty liabilities and employment related expenses,6 the Debtors have
substantial costs with respect to operating leases and capital commitments. At
December 31, 2000, the amount of capital lease obligations included in property,
plant and equipment was $89 million.7 The rental expenses under various
operating leases were $40 million for 2000 and the estimated rental payments for
2001 is $33 million. Capital expenditures in 2000 were $224 million, which
included the completion of two projects started in prior years at Sparrows
Point, namely, the cold mill complex and conversion of continuous slab caster to
wide-slab caster. Through September 30, 2001, capital expenditures for the year
amounted to approximately $60 million. The Debtors will need to continue to make
reasonable capital expenditures in the future to maintain and improve the
competitiveness of their operations and facilities.
Factors Which Adversely Affected Debtors' Liquidity And Cash Flow
28. The United States economy has slowed down considerably in
2000 and 2001. The economic downturn has adversely affected many industries, and
the steel industry, in particular, has been hard hit due to the confluence of
6 In 2000, wage and salary expenses were $818 million and employee benefits
expenses (including pension and OPEB expense, workers' compensation, payroll
taxes and other savings plans) were $513 million. Thus, the aggregate employment
related expenses of BSC and its consolidated subsidiaries for 2000 alone was
$1,331 million.
7 This amount includes the financing arrangement with respect to the ore vessel
charted by BSC, the M/V Cort, and the Sparrows Point caster.
12
many factors, as discussed below. The September 11, 2001 terrorist attacks in
the nation's capital and New York City have deepened this downturn.
29. First, lower steel prices due to worldwide excess capacity
and unfairly traded imports have significantly diminished the profitability of
domestic steel producers, including the Debtors. In certain cases, foreign
producers, which are subsidized by their governments, price their products below
their production costs, which poses an unfair advantage over domestic producers.
In 2000, foreign imports of finished steel products accounted for about 24% of
the domestic market.8
30. Secondly, due to the softening economy, many of the
Debtors' key customers in the automotive, machinery, appliances and construction
industries have slowed production of consumer-end products and reduced their
steel purchase orders. Moreover, consolidation of customers in several major
steel-consuming industries, such as the automotive and container industries, has
increased their buying leverage and made it more difficult for the Debtors to
increase their steel prices. The situation is exacerbated by the highly
competitive nature of the domestic steel market, which affects the price that
the Debtors can charge for their products, the utilization of their production
facilities and their ability to sell higher value products and, ultimately,
their profitability.
31. Thirdly, the intense competitive condition in the domestic
steel market has been also heightened by the bankruptcy filings by a number of
other steel producers. Since December 1997, more than twenty domestic steel
companies have filed for chapter 11 relief. These proceedings could result in
8 BSC is a party to a number of trade proceedings pending before the Department
of Commerce and the International Trade Commission. Such proceedings seek to
impose antidumping and countervailing duties on foreign imports to offset
dumping and the advantages of government subsidies on foreign products imported
in violation of United States trade laws.
13
reduced costs for such companies and promote the continued operation of marginal
facilities, thus perpetuating the existing over capacity in certain product
lines in the steel industry. In addition, as noted earlier, LTV is a partner of
the Debtors in several joint ventures. As a result of LTV's filing for chapter
11 protection, the lenders of the CCC joint venture have sought repayment of the
joint venture debt from BSC on account of its guaranty, causing BSC to post a
$30 million letter of credit, mortgage its headquarters building, and commit to
replace the mortgage with a $15 million letter of credit. BSC has been in
discussions with the CCC lenders and LTV in an attempt to resolve the issues.9
Such discussions are ongoing.
32. Notably, the Bethlehem Companies have the highest total
employment cost (as a percent of sales) in the steel industry at approximately
35% in 2000 and approximately 37% in the first nine months of 2001. Pension and
OPEB expense alone is estimated at about $45 per ton in 2001 and is expected to
reach about $50 per ton in 2002, the highest in the industry. These total
employment expenses, including the legacy costs for pension and OPEB are
staggering,10 consume significant cash flow and liquidity of the company and
impedes the ability to maintain competitive operating facilities.
33. Because of the occurrence of the above mentioned factors,
which collectively and adversely affected the Debtors' business operations and
the resulting liquidity and cash flow, the Debtors reacted quickly by developing
9 LTV and BSC have been meeting their respective obligations in respect of
payment of the joint venture debt, payment to the joint venture for services
rendered by it to LTV and BSC, and making certain contributions for required
capital projects of the joint venture.
10 At current market values and interest rates, the company estimates an
unfunded OPEB obligation of about $3 billion and an unfunded pension obligation
of about $1.85 billion.
14
a business plan to aggressively reduce costs and implement other actions to
improve liquidity, including, among other things, discussions with the company's
lending group to obtain a new and larger secured credit facility that would
increase overall financial flexibility, solicitation of certain noteholders'
consent to incur additional debt, and sale of non-core assets to improve cash
flow and fund business operations, all as discussed more fully below.
Actions Undertaken By Debtors To Improve Liquidity And Cash Flow
34. The Debtors' financial performance for the first quarter
of 2001 was poor. For that period, BSC and its consolidated subsidiaries
reported a net loss of $118 million and cash loss from operations before funding
post-retirement benefits of $153 million. As at March 31, 2001, liquidity of BSC
and its consolidated subsidiaries, comprising of cash, cash equivalent and funds
available under bank credit arrangements, totaled approximately $135 million.
35. Significantly, BSC's secured inventory credit facility and
three other financing arrangements11 had covenants which required it to maintain
a minimum adjusted consolidated tangible net worth at the end of the second
calendar quarter of 2001. Based on the financial results of the first quarter
and the forecast for the second quarter of 2001, concerns were raised as to
whether BSC would be able to comply with this covenant at the end of the second
quarter.
11 The three other financing arrangements consist of a loan in the approximate
amount of $46 million secured by certain assets of the cold mill at Sparrows
Point and the charter obligations totaling approximately $38 million for two
1,000-foot vessels (M/V Stewart Cort and M/V Burns Harbor) that operate under
long-term charters and are used to transport BSC's iron ore to its Burns Harbor
Division.
15
36. Accordingly, BSC promptly entered into discussions with the
lenders to modify this covenant, and to increase availability under the existing
secured credit facility or to refinance or replace the existing facility with a
new facility. However, the indenture with respect to the 10-3/8% Senior Notes
due 2003 (the "Senior Notes") contained a covenant which would have limited the
borrowings under the secured credit facility to no greater than $500 million
(plus up to an additional $100 million under certain conditions). In light of
the indenture's restriction and the need for additional funding to improve
financial flexibility, BSC sought to obtain the consent of holders of the Senior
Notes to waive the covenant and to amend the Indenture to allow the company to
increase its borrowing capacities. During the second quarter of 2001, BSC
successfully obtained consents from the requisite number of holders of the
Senior Notes to amend the indenture to allow the company to increase the amount
of borrowings under the existing credit facility or any future credit facility
from $500 million to $740 million.12
37. By the end of the second quarter of 2001, BSC was also
able to obtain from the lenders under the secured inventory credit facility and
the three other secured financing arrangements an agreement to waive the net
worth covenant contained in those agreements through January 30, 2002.
Specifically, the waiver contained a new financial covenant that BSC's and its
consolidated subsidiaries' income plus interest, depreciation and amortization,
non-cash pension and retiree healthcare and life insurance expense and other
non-cash
12 In exchange for obtaining the consent of holders of Senior Notes to the
proposed amendment, the holders were paid a consent fee equal to $15 per $1,000
principal amount of the Senior Notes with respect to which such consents were
delivered.
16
items would equal or exceed $12.5 million in the third quarter of 2001.13
Because the waivers will expire within one year, the debts associated with these
financing arrangements have been reclassified in the balance sheet of BSC and
its consolidated subsidiaries from long-term liabilities to current liabilities.
The lenders to CCC and CCR also agreed, subject to certain conditions, to
standstill and forbearance agreements relative to their rights against BSC as a
guarantor of the venture loans through January 30, 2002.
38. BSC also pursued the sale of certain non-core assets and
the shut down of certain facilities to raise cash and curtail expenses. In
September 2001, BSC discontinued its coke-making operations at Lackawanna, New
York, which resulted in a $40 million charge in the third quarter of 2001
principally to account for unrecognized employee benefits. In late September,
one of the Debtors sold its interest in certain iron ore bearing properties and
operations in Brazil which produced net cash proceeds of about $4.5 million,
plus a credit in the amount of approximately $18 million to be applied against
future ore purchase costs. It is expected that this credit will be fully
utilized in the next nine months. On October 1, 2001, BSC sold one of its short
line railroads, the South Buffalo Railway, for net cash proceeds of about $30
million. BSC is contemplating the divestiture of its joint venture interest in
Hibbing Taconite Company.
39. Having discussed its financial condition with
representatives of the United Steelworkers of America many times during 2001,
BSC began to meet in September 2001 with the union representatives to discuss,
in earnest, the need for modification of the existing collective bargaining
agreements. It is
13 BSC and its consolidated subsidiaries will be unable to comply with this
covenant in the third quarter of 2001.
17
hoped that through arms-length and good faith negotiations, the parties will be
able to develop new and more flexible work practices and achieve meaningful
reductions in pension and healthcare costs, with the view towards achieving a
successful financial and operational restructuring of BSC. The negotiations are
ongoing.
The Need to Reorganize
40. As noted earlier, in late June 2001, BSC successfully
solicited the consents of holders of Senior Notes to allow BSC to obtain
additional funding under the secured inventory and receivable credit facilities.
Immediately thereafter, the Debtors sought to replace the existing facilities
with a new financing arrangement. In late July 2001, the Debtors obtained a
commitment from General Electric Capital Corporation ("GE Capital") to provide
$550 million of a proposed $750 million senior secured financing, subject to the
completion of due diligence and certain terms and conditions; the Debtors also
sought additional commitments from other lenders. Unfortunately, negotiations
with respect to the replacement credit facility did not materialize and the
Debtors were unable to procure sufficient financing to fund their operating
needs outside of chapter 11 until the steel market and the economy are expected
to improve.
41. As an aftermath of the September 11th terrorist attacks,
domestic steel market conditions have further deteriorated due to the
increasingly sluggish economy. Given the combination of aggravating
circumstances, the Debtors faced another round of liquidity and cash flow
problems, despite diligent efforts in procuring additional financing and cutting
operating costs and expenses. In light of the foregoing, the Debtors decided to
seek chapter 11 relief and obtain debtor-in-possession financing with GE
18
Capital. The terms and conditions of such facility are described in the motion
filed with the Court on the date hereof.
42. In sum, the Debtors are compelled to commence these
chapter 11 cases due to, among other things, severe pricing pressures from
foreign imports, highly competitive market conditions in the domestic steel
industry, and the prolonged economic downturn that has reduced revenues, while
expense levels for current and retired employees under the Debtors' collective
bargaining and other agreements have continued to increase, which factors
collectively reduced the Debtors' liquidity and cash flow. Additionally, the
work rules under such collective bargaining agreements create many
inefficiencies and hinder their ability to compete effectively.
43. To continue, without change, their business operation in
the face of the foregoing operational and financial difficulties is not in the
best interests of the Debtors, their employees, creditors, customers,
shareholders and other parties in interests. From an operational perspective,
the Debtors must continue to reduce costs, increase productivity and efficiency,
and modernize its operating facilities. From a financial perspective, the
Debtors must shed a significant portion of their debt, debt service and legacy
obligations in order to realign their capital structure and reposition their
business.
44. In order to implement the restructuring and reorganization
of the Debtors' business and financial affairs, while minimizing the adverse
effects of the substantial debt service obligations, contraction in credit and
other negative factors, the protection of chapter 11 is essential to the
preservation and enhancement of the Debtors' businesses, their employees, the
19
communities in which they maintain and operate facilities and the protection of
all parties in interest.
/s/ Lonnie A. Arnett
-----------------------------------
Lonnie A. Arnett
Vice President, Controller and
Chief Accounting Officer of
Bethlehem Steel Corporation
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
SWORN TO AND SUBSCRIBED before me, a Notary Public of the
State and County aforesaid on this 15th day of October, 2001.
/s/ Angela M. Williams
------------------------------------
Notary Public
ANGELA M. WILLIAMS
NOTARY PUBLIC, State of New York
No. 01WI4917470
Qualified in Nassau County
Commission Expires Jan. 19, 2002
20
SCHEDULE 1
LIST OF CREDITORS HOLDING 30 LARGEST UNSECURED CLAIMS
Following is the list of the Debtors' creditors holding the 30
largest unsecured claims, excluding prepayments made by the Debtors on account
of merchandise that has not been received as of the Commencement Date. The list
has been prepared in accordance with Rule 1007(d) of the Federal Rules of
Bankruptcy Procedure. The list does not include (1) persons who come within the
definition of "insider" set forth in 11 U.S.C. ss. 101, or (2) secured creditors
unless the value of the collateral is less than the total amount of such
creditor's claim or (3) claims held by any of the Debtors' employees. The
information herein shall not constitute an admission of liability by, nor is it
binding on, the Debtors. This list reflects amounts as of October 12, 2001.
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Name of Creditor and Name, Telephone Number and Nature of Claim Indicate if Claim is Amount of Claim
Complete Mailing Address Complete Mailing Address, (trade debt, bank contingent, (If secured also
Including Zip Code Including Zip Code of Employee, loan, government unliquidated, disputed state value of
Agent, or Department of contract, etc.) or subject to set-off security)
Creditor Familiar with Claim
Who May Be Contacted
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
7-5/8% Notes Darlene Garsteig Loan N/A 150,000,000.00
U.S. Bank Trust National 651-244-5000
Association, Trustee U.S. Bank Trust National
180 East 5th Street, 2nd Association
Floor 180 East 5th Street, 2nd Floor
St. Paul, MN 55101 St. Paul, MN 55101
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
10-3/8% Senior Notes Iliana A. Arciprete Loan N/A 105,000,000.00
The Bank of New York, Trustee 212-495-1784
101 Barclay Street, 21W The Bank of New York
New York, NY 10286 101 Barclay Street, 21W
New York, NY 10286
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
6-1/2% Notes Darlene Garsteig Loan N/A 75,000,000.00
U.S. Bank Trust National 651-244-5000
Association, Trustee U.S. Bank Trust National
180 East 5th Street, 2nd Association
Floor 180 East 5th Street, 2nd Floor
St. Paul, MN 55101 St. Paul, MN 55101
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
8.45% Debenture John Cashin Loan N/A 74,000,000.00
Chase Manhattan Bank 302-552-6279
Delaware, Trustee Chase Manhattan Bank Delaware
1201 Market Street 1201 Market Street
Wilmington, DE 19801 Wilmington, DE 19801
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
7.50% Bonds Robert L. Hannon Bonds N/A 33,000,000.00
Baltimore County , Maryland 410-887-8000
c/o Baltimore County Baltimore County Department of
Department of Economic Economic Development
Development 400 Washington Avenue
400 Washington Avenue Courthouse Mezzanine
Courthouse Mezzanine Towson, MD 21204
Towson, MD 21204
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Name of Creditor and Name, Telephone Number and Nature of Claim Indicate if Claim is Amount of Claim
Complete Mailing Address Complete Mailing Address, (trade debt, bank contingent, (If secured also
Including Zip Code Including Zip Code of Employee, loan, government unliquidated, disputed state value of
Agent, or Department of contract, etc.) or subject to set-off security)
Creditor Familiar with Claim
Who May Be Contacted
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Town of Burns Harbor Esther V. Nickell Bonds N/A 26,200,000.00
Town Hall 219-787-9413
1240 Boo Road Town of Burns Harbor
Burns Harbor, IN 46304 Town Hall
1240 Boo Road
Burns Harbor, IN 46304
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Cambria County Industrial Warren M. Myers Bonds N/A 25,500,000.00
Development Authority 814-472-7420
P.O. Box 94 Cambria County Industrial
Ebensburg, PA 15931 Development Authority
P.O. Box 94
Ebensburg, PA 15931
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Northampton County John W. Kingsley Bonds N/A 23,400,000.00
Industrial Development 610-559-3200
Authority Northampton County Industrial
669 Washington Street Development Authority
Easton, PA 18042 669 Washington Street
Easton, PA 18042
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
7.55% Bonds Robert L. Hannon Bonds N/A 20,800,000.00
Baltimore County , Maryland 410-887-8000
c/o Baltimore County Baltimore County Department of
Department of Economic Economic Development
Development 400 Washington Avenue
400 Washington Avenue Courthouse Mezzanine
Courthouse Mezzanine Towson, MD 21204
Towson, MD 21204
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
DTE Burns Harbor LLC Barry Markowitz Trade Debt N/A 9,909,544.00
425 S Main Street, Suite 201 734-913-2081
PO Box 8614 DTE Burns Harbor LLC
Ann Arbor, MI 48107 425 S Main Street, Suite 201
PO Box 8614
Ann Arbor, MI 48107
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
United Steelworkers of Leo W. Gerard, International Union Contingent 9,000,000.00
America President
Five Gateway Center 412-562-2400
Pittsburgh, PA 15222 United Steelworkers of America
Five Gateway Center
Pittsburgh, PA 15222
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Mitsubishi International Yutaka Kashiwagi Trade Debt N/A 4,481,400.00
Corporation 212-605-3433
Bank of America Mitsubishi International
231 South LaSalle Street Corporation
Chicago, IL 60697 Bank of America
231 South LaSalle Street
Chicago, IL 60697
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
EDS Corporation Michael Hughes Trade Debt N/A 4,182,681.76
P.O. Box 281935 610-694-2637
Atlanta, GA 30384-1935 Eighth & Eaton Avenues
Bethlehem, PA 18016
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Name of Creditor and Name, Telephone Number and Nature of Claim Indicate if Claim is Amount of Claim
Complete Mailing Address Complete Mailing Address, (trade debt, bank contingent, (If secured also
Including Zip Code Including Zip Code of Employee, loan, government unliquidated, disputed state value of
Agent, or Department of contract, etc.) or subject to set-off security)
Creditor Familiar with Claim
Who May Be Contacted
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
American Iron & Steel Andrew G. Sharkey, III Trade Debt N/A 3,315,000.00
Institute President & CEO
Suite 1300 202-452-7100
1101 17th Street NW American Iron & Steel Institute
Washington, D.C. 20036 Suite 1300
1101 17th Street NW
Washington, D.C. 20036
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Norfolk Southern Railway Co David R. Good Trade Debt N/A 2,971,627.88
P.O. Box 75623 757-629-2610
Charlotte, NC 28275 Norfolk Southern Railway Co
P.O. Box 75623
Charlotte, NC 28275
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Vesuvius USA James Engel Trade Debt N/A 2,879,493.98
5645 Collections Center Drive 217-351-5002
Chicago, IL 60693 Vesuvius USA
5645 Collections Center Drive
Chicago, IL 60693
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Walbridge Coatings Ed Williams Trade Debt N/A 2,818,424.88
P.O. Box 98150 419-661-5902
Chicago, IL 60693 Walbridge Coatings
P.O. Box 98150
Chicago, IL 60693
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Baltimore Gas & Electric Co Charles Lidard Trade Debt N/A 2,274,845.03
P.O. Box 1475 410-265-4039
Baltimore, MD 21203 Baltimore Gas & Electric Co
P.O. Box 1475
Baltimore, MD 21203
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Consolidation Coal Co Vince Czajkoski Trade Debt N/A 2,167,145.39
P.O. Box 36003M 412-831-4696
Pittsburgh, PA 15251-6003 Consolidation Coal Co
P.O. Box 36003M
Pittsburgh, PA 15251-6003
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
DTE Sparrows Point LLC Jim Brown Trade Debt N/A 2,075,406.95
Bank One Detroit 410-477-0600
425 S Main Street, Suite 201 425 S Main Street, Suite 201
PO Box 8614 PO Box 8614
Ann Arbor, MI 48107 Ann Arbor, MI 48107
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Philip Metals Inc. Fred Smith Trade Debt N/A 2,010,216.69
Dept L-427P 216-752-4000
Pittsburgh, PA 15264 Philip Metals Inc.
Dept L-427P
Pittsburgh, PA 15264
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Praxair Inc. Gary Scheidt Trade Debt N/A 1,997,906.55
P.O. Box 281901 219-391-5207
Atlanta, GA 30384-1901 Praxair Inc.
P.O. Box 281901
Atlanta, GA 30384-1901
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
CSX Transportation John W. Snow Trade Debt N/A 1,378,652.39
P.O. Box 640839 804-782-1434
Pittsburgh, PA 15264-0839 CSX Transportation
P.O. Box 640839
Pittsburgh, PA 15264-0839
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Name of Creditor and Name, Telephone Number and Nature of Claim Indicate if Claim is Amount of Claim
Complete Mailing Address Complete Mailing Address, (trade debt, bank contingent, (If secured also
Including Zip Code Including Zip Code of Employee, loan, government unliquidated, disputed state value of
Agent, or Department of contract, etc.) or subject to set-off security)
Creditor Familiar with Claim
Who May Be Contacted
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Metal Building Components LP Randy Froehlich Trade Debt N/A 1,278,343.20
(for Metal Coaters of 678-797-9822
Georgia) Metal Building Components LP
P.O. Box 840326 (for Metal Coaters of Georgia)
Dallas, TX 75284-0326 P.O. Box 840326
Dallas, TX 75284-0326
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Iron Ore Company of Canada Ernest Dempsey Trade Debt N/A 1,226,227.91
1010 Sherbrooke St W 514-285-8402
Suite 2500 Iron Ore Company of Canada
Montreal, Quebec H3A 2R7 1010 Sherbrooke St W
Canada Suite 2500
Montreal, Quebec H3A 2R7
Canada
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Tippins Incorporated John E. Thomas Settlement N/A 1,200,000.00
435 Butler Street 412-781-7600
Pittsburgh, PA 15223 Chairman, President & CEO
Tippins Incorporated
435 Butler Street
Pittsburgh, PA 15223
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Indometal (London) Limited Yogie Dadang Trade Debt N/A 1,098,726.58
326-A City Road 9-011-44-207-837-5344
Angel Gate, London EC1 Indometal (London) Limited
326-A City Road
Angel Gate, London EC1
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Pennsylvania Lime Inc. Anthony Mantione Trade Debt N/A 1,083,024.80
P.O. Box 91832 717-867-5800
Chicago, IL 60693-1832 Pennsylvania Lime Inc.
P.O. Box 91832
Chicago, IL 60693-1832
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Air Products & Chemicals Inc. Brian Sullivan Trade Debt N/A 1,052,157.83
P.O. Box 360545M 610-481-8641
Pittsburgh, PA 15251-0545 Air Products & Chemicals Inc.
7201 Hamilton Boulevard
Allentown, PA 18195
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
Superior Natural Gas Corp Mark Snapp Trade Debt N/A 985,350.00
Southwest Bank of Texas 713-353-5360
1021 Main Street, Suite 2100 Superior Natural Gas Corp
Houston, TX 77002-6502 Southwest Bank of Texas
1021 Main Street, Suite 2100
Houston, TX 77002-6502
------------------------------ --------------------------------- -------------------- ------------------------- -------------------
DECLARATION UNDER PENALTY OF PERJURY
ON BEHALF OF A CORPORATION
I, the undersigned authorized officer of Bethlehem Steel
Corporation, a corporation named as a Debtor in these chapter 11 cases and the
direct or indirect corporate parent of the other Debtors in these cases, declare
under penalty of perjury that I have reviewed the List of Creditors Holding 30
Largest Unsecured Claims and that it is true and correct to the best of my
knowledge, information, and belief, with reliance on appropriate corporate
officers.
Dated: New York, New York
October 15, 2001
/s/ Lonnie A. Arnett
--------------------------------------
Lonnie A. Arnett
Vice President, Controller and
Chief Accounting Officer of
Bethlehem Steel Corporation
SCHEDULE 2
CREDITORS HOLDING FIVE LARGEST SECURED CLAIMS(1)
The list does not include persons who come within the definition of "insider"
set forth in 11 U.S.C. ss. 101. The information herein shall not constitute an
admission of liability by, nor is it binding on, the Debtors. This list reflects
amounts as of October 12, 2001.
-----------------------------------------------------------------------------------------------------------------------------------
Creditor's name and mailing Co- Husband, Date claim was incurred, Contingent Un- Disputed Amount of Unsecured
address including zip code Debtor Wife or nature of lien, and liquidated claim without portion,
(2) joint description and estimated deducting if any
community value of collateral value of
securing claim collateral
-----------------------------------------------------------------------------------------------------------------------------------
Morgan Guaranty Trust N/A N/A September 12, 1995; N/A N/A N/A 290.0 million N/A
Company of New York Security Agreement;
500 Stanton Christiana Road Revolving Credit Inventory
Newark, DE 19713-2107 Lien;
Collateral value: $700
million
-----------------------------------------------------------------------------------------------------------------------------------
First Security Bank, N.A. N/A N/A September 29, 2000; N/A N/A N/A 46.8 million N/A
79 South Main Street, Sale/Leaseback Transaction;
Third Floor Slab casting equipment in
Salt Lake City, UT 84111 Sparrows Point, MD;
Collateral value: $50
million
-----------------------------------------------------------------------------------------------------------------------------------
RZB Finance LLC N/A N/A July 21, 1999; Security N/A N/A N/A 45.0 million N/A
1133 Avenue of the Americas Agreement;
16th Floor Certain cold mill equipment
New York, NY 10036 in Sparrows Point, MD;
Collateral value: $50
million
-----------------------------------------------------------------------------------------------------------------------------------
Wilmington Trust Company N/A N/A December 28, 2000; N/A N/A N/A 26.8 million N/A
Rodney Square North Sale/Leaseback Transaction;
1100 North Market Street 1,000 foot Great Lakes Ore
Wilmington, DE 19890 Vessel;
Collateral value: $30
million
-----------------------------------------------------------------------------------------------------------------------------------
Bank of America, N.A. N/A N/A March 14, 1996 N/A N/A N/A 17.9 million N/A
100 North Tryon Street Security Agreement;
Charlotte, NC 28255 Building and rolling mill
equipment at Port of
Indiana, IN;
Collateral value: $20
million
-----------------------------------------------------------------------------------------------------------------------------------
1 Includes secured creditors, other than contingent creditors.
2 Schedule 2 is consolidated for all of the Debtors.
DECLARATION UNDER PENALTY OF PERJURY
ON BEHALF OF A CORPORATION
I, the undersigned authorized officer of Bethlehem Steel
Corporation, a corporation named as a Debtor in these chapter 11 cases and the
direct or indirect corporate parent of the other Debtors in these cases, declare
under penalty of perjury that I have reviewed the List of Creditors Holding Five
Largest Secured Claims and that it is true and correct to the best of my
knowledge, information, and belief.
Dated: New York, New York
October 15, 2001
/s/ Lonnie A. Arnett
-----------------------------------------
Lonnie A. Arnett
Vice President, Controller and
Chief Accounting Officer of
Bethlehem Steel Corporation
SCHEDULE 3
CONSOLIDATED BALANCE SHEET
OF BETHLEHEM STEEL CORPORATION
AND ITS CONSOLIDATED SUBSIDIARIES
AS OF SEPTEMBER 30, 2001
(dollars in millions)
ASSETS
September 30 December 31 September 30
2001 2000 2000
(unaudited) (unaudited)
-------------- ------------- --------------
Current Assets:
Cash and cash equivalents $ 50.4 $ 109.7 $ 111.8
Receivables, less allowances 164.2 152.1 198.3
Inventories:
Raw materials 234.5 303.3 290.4
Finished and semifinished 516.4 570.9 581.2
-------------- ------------- --------------
Total Inventories 750.9 874.2 871.6
Other current assets 23.1 10.4 8.1
-------------- ------------- --------------
Total Current Assets 988.6 1,146.4 1,189.8
Investments and Miscellaneous Assets 134.2 136.1 132.8
Property, Plant and Equipment, less accumulated depreciation
of $4,499.0, $4,363.5 and $4,408.2 2,755.7 2,870.5 2,850.1
Deferred Income Tax Asset - net - 985.0 961.0
Goodwill, less accumulated amortization of $40.0, $31.0 and
$28.0 320.0 329.0 332.0
-------------- ------------- --------------
Total Assets $ 4,198.5 $ 5,467.0 $ 5,465.7
============== ============= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable $ 278.6 $ 382.4 $ 396.6
Accrued employment costs 99.2 109.9 119.7
Other postretirement benefits 205.0 175.0 175.0
Accrued Taxes 70.3 59.7 60.4
Debt and capital lease obligations 388.3 55.4 59.8
Other current liabilities 102.0 144.8 138.7
-------------- ------------- --------------
Total Current Liabilities 1,143.4 927.2 950.2
Long-term Debt and Capital Lease Obligations 578.7 798.0 734.1
Deferred Gain 109.0 126.2 103.5
Pension Liability 539.5 442.0 426.7
Other Postretirement Benefits 1,835.5 1,780.0 1,710.6
Other Long-term Liabilities 295.0 273.6 288.2
Stockholders' Equity (Deficit):
Preferred Stock 11.6 11.6 11.6
Preference Stock 2.0 2.1 2.1
Common Stock 135.1 134.6 134.6
Common Stock held in treasury at cost (65.8) (65.7) (60.8)
Additional paid-capital 1,908.1 1,926.8 1,936.1
Accumulated other comprehensive loss (1.7) - -
Accumulated deficit (2,291.9) (889.4) (771.2)
-------------- ------------- --------------
Total Stockholders' Equity (Deficit) (302.6) 1,120.0 1,252.4
-------------- ------------- --------------
Total Liabilities and Stockholders' Equity (Deficit) $ 4,198.5 $ 5,467.0 $ 5,465.7
============== ============= ==============
SCHEDULE 4
NUMBER AND CLASSES OF SHARES OF STOCK, DEBENTURES AND
OTHER SECURITIES OF BETHLEHEM STEEL CORPORATION THAT
ARE PUBLICLY HELD, AND THE NUMBER OF REGISTERED
HOLDERS THEREOF, LISTING SEPARATELY THOSE SECURITIES
HELD BY EACH OF THE DEBTORS' OFFICERS AND DIRECTORS
Common Stock (Registered on New York and Chicago Stock Exchanges)
-----------------------------------------------------------------
------------------------------- -------------------------- -------------------------------- --------------------------
Type of Security Number of Shares Approximate Number of Record As of Date
Holders
------------------------------- -------------------------- -------------------------------- --------------------------
Common Stock 130,227,172 30,684 September 30, 2001
------------------------------- -------------------------- -------------------------------- --------------------------
---------------------------------------- -------------------------------------- --------------------------------------
Name of Officer or Director Number of Shares Owned(1) As of Date
---------------------------------------- -------------------------------------- --------------------------------------
Outside Directors
---------------------------------------- -------------------------------------- --------------------------------------
Benjamin R. Civiletti 4,700 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Worley H. Clark 5,500 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
John B. Curcio 8,500 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Lewis B. Kaden 4,500 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Harry P. Kamen(2) 12, 400 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
William M. Landuyt 2,400 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Shirley D. Peterson 8,000 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
John F. Ruffle 5,500 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Officers
---------------------------------------- -------------------------------------- --------------------------------------
Leonard M. Anthony 55,180 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Lonnie A. Arnett 144,215 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
David M. Beinner 72,298 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Ronald F. Chango 74,817 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Thomas J. Conarty 64,080 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Stephen G. Donches 121,207 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Duane R. Dunham 305,238 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Andrew R. Futchko 109,292 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
William H. Graham 156,912 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
John L. Kluttz 84,336 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Carl F. Meitzner 130,795 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
----------
1 Number of shares owned includes shares as to which a person has a right to
acquire ownership within 60 days from September 30, 2001.
2 Mr. Kamen also beneficially owns 1,000 shares of Bethlehem $5.00 Preferred
Stock
---------------------------------------- -------------------------------------- --------------------------------------
Gary L. Millenbruch 387,917 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Robert S. Miller, Jr. 10,000 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Augustine E. Moffitt, Jr. 167,835 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Van R. Reiner 90,661 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Malcolm J. Roberts 87,726 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Dorothy L. Stephenson 69,254 September 30, 2001
---------------------------------------- -------------------------------------- --------------------------------------
Preferred Stock (Registered on New York Stock Exchange)
-------------------------------------------------------
---------------------------------- ------------------------- ------------------------------- -------------------------
Type of Security Number of Shares Approximate Number of Record As of Date
Holders
---------------------------------- ------------------------- ------------------------------- -------------------------
$5.00 Cumulative Conv. Preferred 2,500,000 665 September 30, 2001
Stock
---------------------------------- ------------------------- ------------------------------- -------------------------
$2.50 Cumulative Conv. 4,000,000 1,045 September 30, 2001
Preferred Stock
---------------------------------- ------------------------- ------------------------------- -------------------------
$3.50 Cumulative Conv. 5,123,000 1 September 30, 2001
Preferred Stock
---------------------------------- ------------------------- ------------------------------- -------------------------
Publicly Held Debentures (Registered on New York Stock Exchange)
----------------------------------------------------------------
---------------------------------- -------------------------- ------------------------------ -------------------------
Type of Security Amount of Issue Approximate Number of Record As of Date
Holders
---------------------------------- -------------------------- ------------------------------ -------------------------
8.45% Debentures, due March 1, $74 million 463 October 10, 2001
2005
---------------------------------- -------------------------- ------------------------------ -------------------------
Notes and Industrial Revenue Bonds
----------------------------------
----------------------------------- ------------------------ ------------------------------- -------------------------
Type of Security Amount of Issue Approximate Number of Record As of Date
Holders
----------------------------------- ------------------------ ------------------------------- -------------------------
10-3/8% Senior Notes due 2003 $105 million 117 October 10, 2001
----------------------------------- ------------------------ ------------------------------- -------------------------
7-5/8% Notes due 2004 $150 million 17 September 30, 2001
----------------------------------- ------------------------ ------------------------------- -------------------------
6-1/2% Notes due 2006 $75 million Cede & Co.* September 30, 2001
----------------------------------- ------------------------ ------------------------------- -------------------------
Burns Harbor 8.00% IRB $26.2 million Cede & Co.* September 30, 2001
----------------------------------- ------------------------ ------------------------------- -------------------------
Northampton 7.55% IRB $23.4 million Cede & Co.* September 30, 2001
----------------------------------- ------------------------ ------------------------------- -------------------------
Baltimore 7.55% IRB $20.8 million Cede & Co.* September 30, 2001
----------------------------------- ------------------------ ------------------------------- -------------------------
Baltimore 7.50% IRB $33.0 million Cede & Co.* September 30, 2001
----------------------------------- ------------------------ ------------------------------- -------------------------
Cambria 7.5% IRB $25.5 million Cede & Co.* September 30, 2001
----------------------------------- ------------------------ ------------------------------- -------------------------
* Most record holders are trust accounts, brokerages and insurance companies.
In addition to the foregoing debt and equity securities, Bethlehem Steel Company
has issued the following series of Perference Stock, which are not publicly held
nor registered on any stock exchange.
Preference Stock*
-----------------
---------------------------- -------------------------- -------------------------- --------------------------
Type of Security Number of Shares Number of Holders As of Date
---------------------------- -------------------------- -------------------------- --------------------------
Series "A" 5% Cumulative 1,333,643 5,373 September 30, 2001
Conv. Preference Stock
---------------------------- -------------------------- -------------------------- --------------------------
Series "B" 5% Cumulative 715,777 11,391 September 30, 2001
Conv. Preference Stock
---------------------------- -------------------------- -------------------------- --------------------------
o Shares of Preference Stock are issued pursuant to labor agreements to a
trustee under the Employee Investment Program. Series "A" and Series "B" have a
cumulative dividend of 5% per annum payable in cash, Common Stock or additional
shares of Preference Stock. Each share of Preference Stock is entitled to vote
with Common Stock on all matters and is convertible into one share of Common
Stock.
SCHEDULE 5
PREMISES OWNED, LEASED, OR HELD
UNDER OTHER ARRANGEMENT FROM
WHICH THE DEBTORS OPERATE THEIR BUSINESS
The Debtors, through Bethlehem Steel Corporation ("BSC"), own
an office building located at 1170 Eighth Avenue, Bethlehem, Pennsylvania 18016,
which serves as the corporate headquarters.
BSC's principal operations comprise of three divisions: Burns
Harbor, Sparrows Point and Pennsylvania Steel Technology.
o The Burns Harbor facilities are located at (i) U.S.
Highway 12, Burns Harbor, Indiana 46304 and (ii) 2558
Hamburg Turnpike, Lackawanna, New York 14218. These
facilities are owned.
o The Sparrows Point facilities are located at (i) 5111
North Point Boulevard, Sparrows Point, Maryland
21219; (ii) ARC Building, 139 Modena Road,
Coatesville, Pennsylvania 19320; and (iii)
Conshohocken Road, Conshohocken, Pennsylvania 19428.
These facilities are owned.
o The Pennsylvania Steel Technologies facilities are
located at 215 South Front Street, Steelton,
Pennsylvania 17113. These facilities are owned.
The Debtors also lease the following locations and premises
through which they conduct sales activities and operations:
--------------------------------------------------------- ------------------- -----------------------
Leased Location City State/Zip
--------------------------------------------------------- ------------------- -----------------------
900 Old Roswell Lakes Parkway, Suite 140 Roswell GA 30076
--------------------------------------------------------- ------------------- -----------------------
8015 Corporate Drive, Suite 1 Baltimore MD 21236
--------------------------------------------------------- ------------------- -----------------------
300 Vestavia Parkway, Suite 2300 Birmingham AL 35216-3753
--------------------------------------------------------- ------------------- -----------------------
737 North Michigan Avenue, Olympia Centre, Suite 1050 Chicago IL 60611-2615
--------------------------------------------------------- ------------------- -----------------------
8260 North Creek Drive, Suite 120 Cincinnati OH 45236-2296
--------------------------------------------------------- ------------------- -----------------------
77 Milford Drive, Suite 236 Hudson OH 44236
--------------------------------------------------------- ------------------- -----------------------
21 Arbor Vista Court Columbia SC 29229-0006
--------------------------------------------------------- ------------------- -----------------------
1501 LBJ Freeway, Suite 510 Dallas TX 75234-6051
--------------------------------------------------------- ------------------- -----------------------
26777 Central Park Boulevard, City Center Office Park,
Suite 100 Southfield MI 48076
--------------------------------------------------------- ------------------- -----------------------
--------------------------------------------------------- ------------------- -----------------------
Leased Location City State/Zip
--------------------------------------------------------- ------------------- -----------------------
3600 Camelot Drive, S.E. Grand Rapids MI 49546-6002
--------------------------------------------------------- ------------------- -----------------------
3300 Battleground Avenue, Suite 224 Greensboro NC 27410
--------------------------------------------------------- ------------------- -----------------------
10375 Richmond Avenue, Suite 750 Houston TX 77042-4144
--------------------------------------------------------- ------------------- -----------------------
6265 Pear Orchard Road, Suite 104 Jackson MS 39211
--------------------------------------------------------- ------------------- -----------------------
9625 Beauclerc Bluff Road Jacksonville FL 32257
--------------------------------------------------------- ------------------- -----------------------
120 Sears Avenue, Mariposa Center,
Suite 210 Louisville KY 40207-5063
--------------------------------------------------------- ------------------- -----------------------
6055 Primacy Parkway, Suite 432 Memphis TN 38119
--------------------------------------------------------- ------------------- -----------------------
111 East Wisconsin Avenue, Bank One Plaza, Suite 1370 Milwaukee WI 53202-4100
--------------------------------------------------------- ------------------- -----------------------
101 Westpark Drive, Suite 140 Brentwood TN 37027-5003
--------------------------------------------------------- ------------------- -----------------------
103 Eisenhower Parkway, 2nd Floor Roseland NJ 07068-1029
--------------------------------------------------------- ------------------- -----------------------
1730 Walton Road, Suite 302 Blue Bell PA 19422-2301
--------------------------------------------------------- ------------------- -----------------------
750 Holiday Drive, Foster Plaza 9 Pittsburgh PA 15220-2783
--------------------------------------------------------- ------------------- -----------------------
One Blackhawk Drive Eldridge IA 52748
--------------------------------------------------------- ------------------- -----------------------
7202 Glen Forest Drive, Suite 103 Richmond VA 23226-3771
--------------------------------------------------------- ------------------- -----------------------
11820 Tesson Ferry Road, Suite 204 St. Louis MO 63128
--------------------------------------------------------- ------------------- -----------------------
35 Quail Court, Suite 304 Walnut Creek CA 94596
--------------------------------------------------------- ------------------- -----------------------
P.O. Box 967 Wilmington VT 05363
--------------------------------------------------------- ------------------- -----------------------
Bethlehem Steel Corporation, through certain of its
subsidiaries that are non-debtors in these chapter 11 cases, own eight short
line railroads, five of which operate at or near the company's principal steel
plants located in Indiana, Maryland and Pennsylvania, and other transportation
related entities.
SCHEDULE 6
LOCATION OF THE DEBTORS' SUBSTANTIAL ASSETS IN
THE UNITED STATES, AND THE NATURE, LOCATION,
AND VALUE OF ANY ASSETS HELD BY THE DEBTORS
OUTSIDE THE TERRITORIAL LIMITS OF THE UNITED STATES
All or substantially all of the Debtors' material assets are
located in the United States and consist of fee and leasehold interests in real
property, plant, facilities, equipment, fixture and furniture, as well as
interests in joint ventures, partnerships and limited liability companies.
The Debtors also maintain bank accounts and conduct all of
their significant banking and other financial activities in New York, New York.
In addition, the Debtors' key advisors, including their attorneys and financial
consultants, as well as a number of their major creditors and their advisors,
are located in New York City.
In addition to those owned facilities, leased premises and
other locations listed in Schedule 5 from which the Debtors operate their
businesses, certain of the Debtors' assets (comprised primarily of raw
materials, work-in-progress, finished goods and inventory) are placed with
various processors, warehouses, distribution terminals and consignees at the
locations listed below.
------------------------------------------ --------------------------------------- ----------------------------------------
NAME MAILING ADDRESS STATE
---- --------------- -----
------------------------------------------ --------------------------------------- ----------------------------------------
Chicago Steel 174 South 26th Street Alabama 35904
Gadsden
------------------------------------------ --------------------------------------- ----------------------------------------
Global Materials/Hills Marine 1802 Redhat Road Alabama 35602
Enterprises, Inc. Decatur
------------------------------------------ --------------------------------------- ----------------------------------------
Hanna Steel Corp. 3812 Commerce Avenue Alabama 35064
P.O. Box 558
Fairfield
------------------------------------------ --------------------------------------- ----------------------------------------
Mi-Tech Steel, Inc. 3301 Mallard Fox Drive Alabama 35603
Decatur
------------------------------------------ --------------------------------------- ----------------------------------------
Polymer Coil Coaters 7001 Valley Road Alabama 35064
Fairfield
------------------------------------------ --------------------------------------- ----------------------------------------
Amerimax Building Products, Inc. W. Helena Arkansas
------------------------------------------ --------------------------------------- ----------------------------------------
B-Way Corp 10837 Etiwanda Avenue California 92337
Fontana
------------------------------------------ --------------------------------------- ----------------------------------------
Metal Coaters of California Inc. 9133 Center Avenue California 91730
(formerly California Finished Metals) Rancho Cucamonga
------------------------------------------ --------------------------------------- ----------------------------------------
Crown Cork & Seal Company, Inc. 2200 Wilbur Avenue California 94509
Antioch
------------------------------------------ --------------------------------------- ----------------------------------------
Metal Processing, Inc. P. O. Box 3087 Florida
Brandon
------------------------------------------ --------------------------------------- ----------------------------------------
------------------------------------------ --------------------------------------- ----------------------------------------
All Metals Service & Warehousing Inc. 100 All Metal Drive Georgia 30120
Cartersville
------------------------------------------ --------------------------------------- ----------------------------------------
Metal Coaters of GA, Inc. 1150 Marietta Industrial Drive N.E. Georgia 30062
Marietta
------------------------------------------ --------------------------------------- ----------------------------------------
Norfolk Southern Corporation Southern Region Material Supply Georgia 30318
Gate 8
1680 Marietta Road NW
Atlanta
------------------------------------------ --------------------------------------- ----------------------------------------
Southeastern Metal Processing 509 Bankhead Highway Georgia 30680
P. O. Box 25
Winder
------------------------------------------ --------------------------------------- ----------------------------------------
Butler Manufacturing Company 1029 S Henderson Illinois 61401
Galesburg
------------------------------------------ --------------------------------------- ----------------------------------------
Feralloy Corporation (St. Louis Division) 2500 Century Drive Illinois 62040
Granite City
------------------------------------------ --------------------------------------- ----------------------------------------
Hanna Steel Corp. 200 Hanna Drive Illinois 61554
Pekin
------------------------------------------ --------------------------------------- ----------------------------------------
Holland Company (Lewis Rail Division) 171 Street Illinois 60429
Ashland IC Railyard
Hazlecrest
------------------------------------------ --------------------------------------- ----------------------------------------
Precoat Metals 4800 S. Kilbourn Avenue Illinois 60632
Chicago
------------------------------------------ --------------------------------------- ----------------------------------------
Sequa Corporation, Northgate Industrial Park, Route 3 Illinois 62040
Precoat Metals Division Granite City
------------------------------------------ --------------------------------------- ----------------------------------------
Steel Warehouse - Quad Cities Inc. 4305 81st Ave W Illinois 61201
Rock Island
------------------------------------------ --------------------------------------- ----------------------------------------
Chicago Cold Rolling, LLC 1000 E. Boundary Road Indiana 46368
Portage
------------------------------------------ --------------------------------------- ----------------------------------------
Chicago Steel & Tinplate 700 Chase Street Indiana 46404
Gary
------------------------------------------ --------------------------------------- ----------------------------------------
Feralloy Corporation (Midwest) 6755 Waterway Indiana 46368
Portage
------------------------------------------ --------------------------------------- ----------------------------------------
Flat Rock Metal Processing 725 George Nelson Drive Indiana 46368
Portage
------------------------------------------ --------------------------------------- ----------------------------------------
Great Lakes Processing 345 Salmon Drive Indiana 46368
Portage
------------------------------------------ --------------------------------------- ----------------------------------------
Indiana Pickling & Process 6600 U.S. Highway 12 Avenue Indiana 46368
Portage
------------------------------------------ --------------------------------------- ----------------------------------------
Mi-Tech Steel, Inc. 1811 N. Montgomery Street Indiana 47240-2620
Greensburg
------------------------------------------ --------------------------------------- ----------------------------------------
National Steel (Great Lakes Division) 1 Quality Drive Michigan 48229
Ecourse
------------------------------------------ --------------------------------------- ----------------------------------------
Precision Strip, Inc. 3518 W. 73rd Street Indiana 46013
Anderson
------------------------------------------ --------------------------------------- ----------------------------------------
Precoat Metals US Highway 12 Indiana 46368
Portage
------------------------------------------ --------------------------------------- ----------------------------------------
Roll & Hold Warehouse & Distribution 725 George Nelson Drive Indiana 46368
Portage
------------------------------------------ --------------------------------------- ----------------------------------------
------------------------------------------ --------------------------------------- ----------------------------------------
Roll & Hold Warehouse & Distribution 2515 S. Holt Street Indiana 46241
Indianapolis
------------------------------------------ --------------------------------------- ----------------------------------------
Roll Coater Incorporated 1950 E Main Street Indiana 46140
P. O. Box 787
Greenfield
------------------------------------------ --------------------------------------- ----------------------------------------
Roll Coater Incorporated 2nd & Hupp Roads Indiana 46345
P.O. Box 325
Kingsbury
------------------------------------------ --------------------------------------- ----------------------------------------
S.E.T. Steel (formerly Noble Metals) 9990 E. 56th Street Indiana 46236
Indianapolis
------------------------------------------ --------------------------------------- ----------------------------------------
Steel Warehouse Company, Inc. 2722 W. Tucker Drive Indiana 46624
South Bend
------------------------------------------ --------------------------------------- ----------------------------------------
Voss Clark 701 Loop Road Indiana 47130
Jeffersonville
------------------------------------------ --------------------------------------- ----------------------------------------
Worthington Steel Co. 100 Worthington Drive Indiana 46304
Porter
------------------------------------------ --------------------------------------- ----------------------------------------
Roll & Hold Warehouse & Distribution 3863 W. River Drive Iowa 52802
Davenport
------------------------------------------ --------------------------------------- ----------------------------------------
Eagle Steel Products Inc. 2500 S. Floyd Street Kentucky 40217
Louisville
------------------------------------------ --------------------------------------- ----------------------------------------
Kentucky Steel Center Inc. 1101 Mayde Road Kentucky 40403
Berea
------------------------------------------ --------------------------------------- ----------------------------------------
Noble Metal Processing Inc. 6301 Midland Industrial Drive Kentucky 40065
Shelbyville
------------------------------------------ --------------------------------------- ----------------------------------------
Steel Technologies P.O. Box 43339 Kentucky 40253
Louisville
------------------------------------------ --------------------------------------- ----------------------------------------
Amtrol Inc. 2440 Grays Road Maryland 21219
Sparrows Point
------------------------------------------ --------------------------------------- ----------------------------------------
Chesapeake Finished Metals 6754 Santa Barbara Court Maryland 21227
Baltimore
------------------------------------------ --------------------------------------- ----------------------------------------
Crown Cork & Seal Company, Inc. Pulanski Industrial Parkway Maryland
Baltimore
------------------------------------------ --------------------------------------- ----------------------------------------
Diamond Traffic Services, Inc. 7670 Canton Center Drive Maryland 21224-2027
Baltimore
------------------------------------------ --------------------------------------- ----------------------------------------
HS Processing LP (aka Heidtman Steel) 2121 Grays Road Maryland 21222
Baltimore
------------------------------------------ --------------------------------------- ----------------------------------------
Main Steel Polishing Co Inc. 6301 Erdman Avenue Maryland 21205
Baltimore
------------------------------------------ --------------------------------------- ----------------------------------------
Maryland Metals Processing, Inc. 4425 A North Point Boulevard Maryland 21219
Baltimore
------------------------------------------ --------------------------------------- ----------------------------------------
Quality Packaging Inc. P. O. Box 1743 Maryland 21060
Glen Burnie
------------------------------------------ --------------------------------------- ----------------------------------------
Shipside Marine Freight 1601 S. Highland Avenue Maryland 21224
Baltimore
------------------------------------------ --------------------------------------- ----------------------------------------
Tin Star Co 6230 Frankford Avenue Maryland 21206
Baltimore
------------------------------------------ --------------------------------------- ----------------------------------------
Titan Steel 2500-B Broening Highway Maryland 21224
Baltimore
------------------------------------------ --------------------------------------- ----------------------------------------
------------------------------------------ --------------------------------------- ----------------------------------------
Worthington Steel Co. 8911 Kelso Drive Maryland 21221
Baltimore
------------------------------------------ --------------------------------------- ----------------------------------------
Arlington Metals Corporation 13100 Arlington Drive Michigan 49125
Sawyer
------------------------------------------ --------------------------------------- ----------------------------------------
Bing Metals Group 1500 E. Euclid Street Michigan 48211
Detroit
------------------------------------------ --------------------------------------- ----------------------------------------
Dearborn Steel Center, Inc. 6837 Wyoming Avenue Michigan 48126-2346
Dearborn
------------------------------------------ --------------------------------------- ----------------------------------------
Delaco Steel Corporation 8111 Tireman Avenue Michigan 48126
Dearborn
------------------------------------------ --------------------------------------- ----------------------------------------
Demmer Corp. 3525 Capital City Boulevard Michigan 48901
Lansing
------------------------------------------ --------------------------------------- ----------------------------------------
Ferralloy North American Steel Co. 18030 Rialto Michigan 48122
Melvindale
------------------------------------------ --------------------------------------- ----------------------------------------
Ferrolux Metals Co (Division of Ferragon 36263 Michigan Avenue Michigan 48184
Group) Wayne
------------------------------------------ --------------------------------------- ----------------------------------------
Flat Rock Metal Inc. 26601 W. Huron River Drive Michigan 48134
Flat Rock
------------------------------------------ --------------------------------------- ----------------------------------------
Integrated Terminals 25325 Hall Road Michigan 48183
Woodhaven
------------------------------------------ --------------------------------------- ----------------------------------------
Kalamazoo Steel Processing, Inc. 306 Peekstok Road Michigan 49005-0169
Kalamazoo
------------------------------------------ --------------------------------------- ----------------------------------------
Kasle Steel Corporation 25225 Hall Road Michigan 48183
Woodhaven
------------------------------------------ --------------------------------------- ----------------------------------------
Kasle Steel Corporation 1301 Alabama Avenue Michigan 48505
Flint
------------------------------------------ --------------------------------------- ----------------------------------------
Lafayette Steel Co. 3600 N. Military Street Michigan 48210-0001
Detroit
------------------------------------------ --------------------------------------- ----------------------------------------
Michigan Steel Processing, Inc. 36211 S. Huron Road Michigan 48164
New Boston
------------------------------------------ --------------------------------------- ----------------------------------------
Noble Metal Products (formerly Utilase, 20101 Hoover Road Michigan 48205
Inc.) Detroit
------------------------------------------ --------------------------------------- ----------------------------------------
Pro Coil 5260 Haggerty Road South Michigan 48188
Canton
------------------------------------------ --------------------------------------- ----------------------------------------
RSDC of Michigan 1775 Holloway Drive Michigan 48842
Holt
------------------------------------------ --------------------------------------- ----------------------------------------
Shiloh of Michigan LLC 9800 Inkster Road Michigan 48174
Romulus
------------------------------------------ --------------------------------------- ----------------------------------------
Steelcase Inc. 4380 52nd Street Michigan 49512
Kentwood
------------------------------------------ --------------------------------------- ----------------------------------------
Steelcase Inc. 4300 Eastern Avenue Michigan 49546
Grand Rapids
------------------------------------------ --------------------------------------- ----------------------------------------
Thyssen Steel One Thyssen Park Drive Michigan 48210
Detroit
------------------------------------------ --------------------------------------- ----------------------------------------
Voss Lantz 19451 Sherwood Michigan 48234
Detroit
------------------------------------------ --------------------------------------- ----------------------------------------
Wayne Industries Inc. 36253 Michigan Avenue Michigan 48184
Wayne
------------------------------------------ --------------------------------------- ----------------------------------------
------------------------------------------ --------------------------------------- ----------------------------------------
Worthington Specialty Proc. P.O. Box 1068 Michigan 49204
Jackson
------------------------------------------ --------------------------------------- ----------------------------------------
Worthington Steel Company 1170 Worthington Drive Michigan 48180
Taylor
------------------------------------------ --------------------------------------- ----------------------------------------
Consolidated Material Products 1085 Mendell Davis Drive Mississippi
Jackson
------------------------------------------ --------------------------------------- ----------------------------------------
Double G Coatings Inc. 1096 Mendell Davis Drive Mississippi 39212
Jackson
------------------------------------------ --------------------------------------- ----------------------------------------
Doublecote LLC 951 Prisock Drive Mississippi 39212
Jackson
------------------------------------------ --------------------------------------- ----------------------------------------
Nitek Metal Service 212 Apache Drive Mississippi 39212
Jackson
------------------------------------------ --------------------------------------- ----------------------------------------
Precoat Metals 1095 Mendell Davis Drive Mississippi 39212
Jackson
------------------------------------------ --------------------------------------- ----------------------------------------
Baldwin Steel Co Inc. 500 State Route 440 New Jersey 07305
Jersey City
------------------------------------------ --------------------------------------- ----------------------------------------
B-Way Corp 6 Litho Road New Jersey 08638
Trenton
------------------------------------------ --------------------------------------- ----------------------------------------
Dynamic Metals Inc. 1713 S 2nd Street New Jersey 08854
Piscataway
------------------------------------------ --------------------------------------- ----------------------------------------
Englert Inc. 1200 Amboy Avenue New Jersey 08862
Perth Amboy
------------------------------------------ --------------------------------------- ----------------------------------------
Lynn/Hudd Steel Corp 235 St. Nicholas Avenue New Jersey 07080
South Plainfield
------------------------------------------ --------------------------------------- ----------------------------------------
T.P.C. Metals Inc. 798 Frelinghoysen Avenue New Jersey 07114
Newark
------------------------------------------ --------------------------------------- ----------------------------------------
Integrated Terminals 1951 Hamburg Turnpike, Box 24 New York 14218
Lackawanna
------------------------------------------ --------------------------------------- ----------------------------------------
Butler Manufacturing Company 13421 N Rocky Road North Carolina 28353
Laurinburg
------------------------------------------ --------------------------------------- ----------------------------------------
Roll & Hold Warehousing & Distribution Arrowhead Industrial Park North Carolina 28273
9925 Brookford Street
Charlotte
------------------------------------------ --------------------------------------- ----------------------------------------
Wayne Steel, Inc. 4309 U.S. Highway 311 North Carolina 27317-7316
Randleman
------------------------------------------ --------------------------------------- ----------------------------------------
Allied Signal 851 Jacksonville Road Ohio 45331
Greenville
------------------------------------------ --------------------------------------- ----------------------------------------
B-Way Corp 8200 Broadwell Road Ohio 45244
Cincinnati
------------------------------------------ --------------------------------------- ----------------------------------------
Columbus Coatings Company, an Ohio 1800 Watkins Road Ohio 43207
General Partnership Columbus
------------------------------------------ --------------------------------------- ----------------------------------------
Columbus Processing Co. 4300 Alum Creek Road Ohio 43207
Obetz
------------------------------------------ --------------------------------------- ----------------------------------------
IDS of Cleveland 8056 Highland Poite Parkway Ohio 44056
Macedonia
------------------------------------------ --------------------------------------- ----------------------------------------
Liverpool Coil Processing, Incorporated 880 Steel Drive Ohio 44280
Valley City
------------------------------------------ --------------------------------------- ----------------------------------------
------------------------------------------ --------------------------------------- ----------------------------------------
Medina Blanking, Inc. 5580 Wegman Drive Ohio 44136-0009
P.O. Box 360513
Valley City
------------------------------------------ --------------------------------------- ----------------------------------------
Metals USA Inc. - Krohn Steel Service 5750 Lower Valley Pike Ohio 45502
Center Springfield
------------------------------------------ --------------------------------------- ----------------------------------------
OSMI 1305 Innisfallen Avenue Ohio 45506
Springfield
------------------------------------------ --------------------------------------- ----------------------------------------
Pre Finish Metals, Inc. 30610 E. Broadway Ohio 43465
(Walbridge Coatings) Walbridge
------------------------------------------ --------------------------------------- ----------------------------------------
Pre Finish Metals, Inc. 2400 Yankee Road Ohio 45044
Middletown
------------------------------------------ --------------------------------------- ----------------------------------------
Precision Strip, Inc. 315 Park Avenue Ohio 45371
Tipp City
------------------------------------------ --------------------------------------- ----------------------------------------
Precision Strip, Inc. 86 S. Ohio Street Ohio 45865-0104
P. O. Box 104
Minster
------------------------------------------ --------------------------------------- ----------------------------------------
Processing Technologies 7401 Ponderosa Road Ohio 43551
Perrysburg
------------------------------------------ --------------------------------------- ----------------------------------------
Pro-Tec Coatings Co. 5000 County Rd. #5 Ohio 45856
Leipsic
------------------------------------------ --------------------------------------- ----------------------------------------
Quality Steel Storage, Inc. 5400 N. Detroit Avenue Ohio 43612
Toledo
------------------------------------------ --------------------------------------- ----------------------------------------
Roll & Hold 755 Highland Road Ohio 44056
Macedonia
------------------------------------------ --------------------------------------- ----------------------------------------
Samuel Steel Pickling 1400 Enterprise Parkway Ohio 44087
Twinsburg
------------------------------------------ --------------------------------------- ----------------------------------------
Shiloh Industries 402 Ninth Avenue Ohio 44905-0037
Mansfield
------------------------------------------ --------------------------------------- ----------------------------------------
Southwestern Ohio Steel, Inc. 1701/1801 Made Drive Ohio 45042
Middletown
------------------------------------------ --------------------------------------- ----------------------------------------
Taylor Coil Processing 2260 Industrial Trace Ohio 44481
Lordstown
------------------------------------------ --------------------------------------- ----------------------------------------
Worthington Steel Co. 350 Lawton Avenue Ohio 45050
Monroe
------------------------------------------ --------------------------------------- ----------------------------------------
Butler Manufacturing Company 400 N. Weaver Street Pennsylvania 17003
Annville
------------------------------------------ --------------------------------------- ----------------------------------------
Can Corp of America Excelsior Industrial Park Pennsylvania 19510
P.O. Box 170
Blandon
------------------------------------------ --------------------------------------- ----------------------------------------
Centria 1005 Beaver Grade Road Pennsylvania 15108
Ambridge
------------------------------------------ --------------------------------------- ----------------------------------------
Chicago Steel Ltd. Partnership Fairless Works Pennsylvania 19030
c/o USS Fairless Works Fairless Hills
------------------------------------------ --------------------------------------- ----------------------------------------
Hoffman Industries Inc. 3145 Shillington Road Pennsylvania
P.O. Box 4127
Sinking Springs
------------------------------------------ --------------------------------------- ----------------------------------------
Pacesetter Steel Service, Inc. 10 Steel Road East Pennsylvania 19067
Morrisville
------------------------------------------ --------------------------------------- ----------------------------------------
------------------------------------------ --------------------------------------- ----------------------------------------
Penntech Transfer Corporation 701 Spring Street, P.O. Box 14203 Pennsylvania 19087
Reading
------------------------------------------ --------------------------------------- ----------------------------------------
Pre Finish Metals, Inc. 1295 New Ford Mill Road Pennsylvania 19067
Morrisville
------------------------------------------ --------------------------------------- ----------------------------------------
Precoat Metals 3500 Walnut Street Pennsylvania 15132-7257
McKeesport
------------------------------------------ --------------------------------------- ----------------------------------------
World Class Processing 21 Century Drive Pennsylvania 15003
Ambridge
------------------------------------------ --------------------------------------- ----------------------------------------
All Metal Service and Warehouse Inc. 115 Coastline Road South Carolina 29301
Spartanburg
------------------------------------------ --------------------------------------- ----------------------------------------
Cherokee Marine Terminal 520 Cowan Street Tennessee 37207
Nashville
------------------------------------------ --------------------------------------- ----------------------------------------
Delta Storage & Transfer, Inc. 1388 N. Seventh Street, P.O. Box 70286 Tennessee 38107
Memphis
------------------------------------------ --------------------------------------- ----------------------------------------
Hunter Marine Terminal Transport 6615 Robertson Avenue Tennessee 37209
P. O. Box 90025
Nashville
------------------------------------------ --------------------------------------- ----------------------------------------
Marubeni America Corporation 104 Western Avenue Tennessee 37148
Portland
------------------------------------------ --------------------------------------- ----------------------------------------
Mi-Tech Steel, Inc. 212 Rutherford Boulevard Tennessee 37133
P.O. Box 469
Murfreesboro
------------------------------------------ --------------------------------------- ----------------------------------------
Saturn Corporation 100 Saturn Parkway Tennessee 37174-1500
P.O. Box 1500
Spring Hill
------------------------------------------ --------------------------------------- ----------------------------------------
Transtor 4740 Hungerford Road Tennessee 38118
P.O. Box 18967
Memphis
------------------------------------------ --------------------------------------- ----------------------------------------
Houston Barge Terminal (Div. of General 5807 Navigation Boulevard, Box 9128 Texas 77011
Stevedores, Inc.) Houston
------------------------------------------ --------------------------------------- ----------------------------------------
Precoat Metals 16402 Jacintoport Boulevard Texas 77015
Houston
------------------------------------------ --------------------------------------- ----------------------------------------
Oborn Transfer & Storage Freeport Center Building, A-15 Utah 84016
715 Spot 0 Yard 7
P. O. Box 1475
Clearfield
------------------------------------------ --------------------------------------- ----------------------------------------
Metals USA Spec. 301 Industrial Drive Wisconsin 53032
Horicon
------------------------------------------ --------------------------------------- ----------------------------------------
Roll Coater Incorporated 4502 Freedom Way West Virginia 26062
P. O. Box 591
Weirton
------------------------------------------ --------------------------------------- ----------------------------------------
Samuel Metal Proc. P.O. Box 3155 LCD4 Ontario, Canada
Hamilton L8H7K8
------------------------------------------ --------------------------------------- ----------------------------------------
All or substantially all of the Debtors' corporate books and
records are located at (i) the corporate headquarters at 1170 Eighth Avenue,
Bethlehem, Pennsylvania, (ii) the Eighth and Eaton Avenue Building in Bethlehem,
Pennsylvania, (iii) Electronic Data Systems Corporation at 5400 Legacy Drive,
Plano, Texas, and (iv) the Debtors' principal steel plants in Indiana, Maryland,
New York and Pennsylvania.
Bethlehem Steel Corporation maintains computer operations in
its Eighth Avenue Building in Bethlehem, Pennsylvania, and conducts research
activities in its Homer Research Complex (three buildings) in Bethlehem,
Pennsylvania. It also operates a family health clinic in Bethlehem,
Pennsylvania.
Bethlehem Steel Corporation owns property in or near
Bethlehem, Pennsylvania, Johnstown, Pennsylvania, and Lackawanna, New York, on
or near which Bethlehem Steel Corporation formerly conducted steelmaking-related
activities.
Some of the Debtors also own coal reserves in western
Pennsylvania and eastern Kentucky and reserve property in several states,
including Colorado, Louisiana, Illinois, Maryland, New Jersey, Oklahoma,
Pennsylvania and Texas.
SCHEDULE 7
THE DEBTORS' EXISTING SENIOR MANAGEMENT,
THEIR TENURE WITH THE DEBTORS, AND A SUMMARY OF
THEIR RELEVANT RESPONSIBILITIES AND EXPERIENCE
------------------------------------------ ---------------------------------------------------------------------------
Name/Position Summary of Responsibilities and Experience
------------------------------------------ ---------------------------------------------------------------------------
Robert S. Miller Mr. Miller graduated from Stanford University where he
Chairman & Chief Executive Officer obtained a bachelor degree in Economics. In 1966, he obtained
a juris doctor decree from Havard Law School and, in 1968 he
received an MBA degree in Finance from the Stanford Business
School. In 1979, he joined the then floundering Chrysler
Corporation where he was instrumental in procuring a
successful restructuring of the company. He remained until
1992 with Chrysler where served as its Chief Financial Officer
and Vice Chairman. He then joined the investment banking firm
head by Paul Volcker, former head of the Federal Reserve, and
Jim Wolfensohn, the current president of World Bank. In 1995,
he was elected Chairman of the engineering and construction
firm of Morrison Knudsen (now known as the Washington Group)
and successfully concluded an innovative restructuring of that
company. In 1996, he served as Acting CEO of Federal Mogul, an
auto parts maker based in Detroit, and in October 1997, he was
named Chairman and CEO of Waste Management, the world's
largest environmental services company. From November 1999
through February 2000, he was President of Reliance Group
Holdings, a diversified property and casualty insurance
company. From March through September 2000, he served with
Bill Donaldson in the two-person office of the CEO of Aetna,
Inc. From September 2000 until January 2001, he rejoined
Federal Mogul was its Chairman and Interim CEO. In September
2001, he joined Bethlehem Steel Corporation as its Chairman
and Chief Executive Officer.
------------------------------------------ ---------------------------------------------------------------------------
Duane R. Dunham Mr. Dunham graduated in 1964 from Western Michigan University
President & Chief Operating Officer with a bachelor of science degree in administration. In 1965,
he received a master's degree in business administration from
the Pennsylvania State University. He completed the Advanced
Management Program at Stanford University's Graduate School of
Business in 1991. He joined Bethlehem Steel in 1965 and first
served as salesman in Buffalo, New York. He was transferred to
------------------------------------------ ---------------------------------------------------------------------------
------------------------------------------ ---------------------------------------------------------------------------
the Bethlehem, Pa. headquarters in 1971 as a salesman in the
galvanized and specialty sheet sales division, in which he
later served as product specialist, assistant manager and
manager. Mr. Dunham was promoted to general manager of
marketing services in 1986 and a year later advanced to
general manager, tin mill products sales and marketing. He was
general manager, marketing in 1988. He was elected vice
president, marketing in 1990 and named president of the
Sparrows Point Division in January 1993. Six years later, he
was elected executive vice president, commercial and business
development. In August 1999, he was elected president and
chief operating officer with responsibility for Bethlehem's
operating commercial and business development activities. In
April 2000, Mr. Dunham was elected chairman, president and
chief executive officer. After Mr. Miller joined Bethlehem in
September 2001, Mr. Dunham agreed to stay with the company and
serve as its president and chief operating officer.
------------------------------------------ ---------------------------------------------------------------------------
Augustine E. Moffitt, Jr. Mr. Moffittt graduated from LaSalle College in 1967 with a
Executive Vice President & Bachelor of Science, cum laude, in Chemistry. He earned a
Chief Administrative Officer Master of Science degree in 1969 and a Doctor of Science in
1973, both from Harvard University. Prior to joining Bethlehem
Steel in 1973, Mr. Moffittt had served with the National
Institute for Occupational Safety and Health at its
Cincinnati, Ohio, office. Mr. Moffitt's initial assignment
with Bethlehem was as senior environmental chemist and
toxicologist. In 1980 he was promoted to manager of
environmental health. Three years later, he was named manager
of occupational health and safety. In 1984 he was transferred
from the corporate office to the Bethlehem Structural Products
Division as manager of human resources, with responsibility
for a broad range of personnel and employment matters
including union relations, environmental control, safety and
health, industrial engineering, salary administration, human
resources planning and development, and employee services. He
was elected vice president, safety, health and environment for
Bethlehem Steel, effective March 1, 1994, and to senior vice
president and chief administrative officer effective January
1, 1998. He was elected to his current position, effective
February 1, 2000. Mr. Moffitt is a 1996 graduate of the
Harvard Business School's Advanced Management Program.
------------------------------------------ ---------------------------------------------------------------------------
David M. Beinner Mr. Beinner received a bachelor of science degree in business
Senior Vice President (Commercial) administration from the University of Delaware and completed
the Senior Executive Program at Stanford University's Graduate
------------------------------------------ ---------------------------------------------------------------------------
------------------------------------------ ---------------------------------------------------------------------------
School of Business in 1990. Following graduation from college,
he served four years as an infantry officer in the United
States Marine Corps and was discharged in 1965 with the rank
of captain. Mr. Beinner joined Bethlehem in 1965 as a member
of the Loop Course, the company's management training program,
and was first assigned as a salesman in Chicago, Ill. He was
transferred to Bethlehem, Pa. in 1973 as a product specialist
in plate sales and was later promoted to assistant manager of
plate sales. In 1981, he was appointed manager of sales in
Bethlehem's Boston office and, in 1983, he returned to
Bethlehem as manager of sales, plates and tubular products. In
1984, he was promoted to manager of sales, Midwest Region,
with offices in Chicago. He was promoted to general manager of
corporate sales at the corporate headquarters in Bethlehem in
May 1988. In January 1993, he was appointed to Vice President,
Commercial, of the Burns Harbor division. He was elected to
his current position in October 1999.
------------------------------------------ ---------------------------------------------------------------------------
Thomas J. Conarty, Jr. Mr. Conarty has been with Bethlehem Steel Corporation for
Senior Vice President (Procurement, about 26 years. Prior to joining Bethlehem, he was Plant
Information Technology and Logistics) Manager of a specialty chemical manufacturing facility that
was a subsidiary of a major consumer products corporation. His
background includes undergraduate and graduate training in
Chemical and Mechanical Engineering at Lehigh University and
Johns Hopkins. In 1990, he completed the Harvard Business
Management Program. He also has completed management training
at Pennsylvania State University, the University of Michigan
and Duke University. Most recently, he graduated from the
Advanced Management Program at the Wharton School of the
University of Pennsylvania in 1999. He was elected Vice
President and Chief Information Officer in October, 1999. In
April, 2000 he was elected Senior Vice President and Chief
Procurement and Information Officer with responsibilities for
Procurement, Information Technology and Logistics. After an
initial period at Bethlehem Steel's Sparrows Point Division
located in Baltimore, Md., the balance of Mr. Conarty's career
has been spent at Corporate Headquarters in Bethlehem, Pa.
------------------------------------------ ---------------------------------------------------------------------------
William H. Graham Mr. Graham graduated from Ohio State University with a
Senior Vice President, bachelor of arts degree in 1968. He then served as a
General Counsel & Secretary lieutenant in the U.S. Army from December 1968 until September
1970. Following military service, he earned a doctor of
jurisprudence degree from Rutgers University law school in
1973. He was awarded a master of laws degree in corporate law
from New York University law school in 1978 and a master of
------------------------------------------ ---------------------------------------------------------------------------
------------------------------------------ ---------------------------------------------------------------------------
laws degree in trade regulation law from New York University
law school in 1980. Prior to joining Bethlehem Steel as an
attorney in the law department in 1977, he was an attorney
with McElroy, Connell, Foley and Geiser, a law firm in Newark,
N.J. Mr. Graham was promoted to senior attorney in 1979 and
general attorney in 1981, with responsibilities in connection
with state and federal litigation matters. He advanced to
assistant general counsel in 1985, and was elected general
counsel, effective November 1, 1992. Mr. Graham was elected
vice president, general counsel and secretary, effective
January 25, 1995 and to his current position effective
February 1, 2000.
------------------------------------------ ---------------------------------------------------------------------------
Leonard M. Anthony Mr. Anthony earned a bachelor of science degree in accounting
Senior Vice President, Chief Financial from The Pennsylvania State University in 1976 and was awarded
Officer and Treasurer a master of business administration degree from the Wharton
School of the University of Pennsylvania in 1993. He also
earned the designation Certified Cash Manager from the
Treasury Management Association. Mr. Anthony joined the credit
division of Bethlehem's finance department in 1979 where he
progressed to administrative manager in 1982 and to credit
manager in 1985. The following year, he joined the financial
services division as director, financial services and, in
1990, he was promoted to director, risk management. He was
appointed manager, financial planning and risk management, in
1993; elected to assistant treasurer in April 1998, to the
position of Treasurer in October 1999, and to the current
position in October 2001. Mr. Anthony is Bethlehem Steel's
representative on the Bethlehem Economic Development
Corporation (BEDCO) Loan Pool Committee, which provides
financing for economic development projects in the city.
------------------------------------------ ---------------------------------------------------------------------------
Lonnie A. Arnett Mr. Arnett graduated magna cum laude from Western Kentucky
Vice President and Controller and Chief University in 1968 with a bachelor of science degree in
Accounting Officer accounting. That year he joined the independent auditing firm
of Deloitte Haskins & Sells and worked in their New York
Executive and Cincinnati offices. He is a Certified Public
Accountant in Ohio and New York. In 1977, he joined Armco Inc.
where he advanced to corporate controller in 1982. In 1984, he
joined Bethlehem Steel Corporation and was elected controller.
He was elected vice president and controller in 1986. In
addition to the traditional controllership responsibilities
for financial and cost accounting and analysis, his
responsibilities include tax, internal audit, employee benefit
plan accounting and employment cost analysis. Mr. Arnett
attended the Advanced Management Program of the Harvard
------------------------------------------ ---------------------------------------------------------------------------
------------------------------------------ ---------------------------------------------------------------------------
Business School in 1988. He is a member of the Committee on
Corporate Reporting of the Financial Executives Institute
where he previously served as Vice Chairman. He has served on
the Special Committee on Financial Reporting of the American
Institute of Certified Public Accountants and on the boards
and as an officer of numerous civic and professional
organizations. He is a past President of Historic Bethlehem
Incorporated and currently serves on the Board of Trustees of
the Discovery Center of Science and Technology.
------------------------------------------ ---------------------------------------------------------------------------
Ronald F. Chango Mr. Chango holds a Bachelor of Science degree in chemical
President, Burns Harbor Division engineering from Drexel University. In 1999 he attended the
Advanced Management Program at the University of
Pennsylvania's Wharton School of Business and earlier had
completed several senior management programs at the Fuqua
School of Business at Duke University. Mr. Chango joined
Bethlehem Steel in 1970 at the blast furnace department at the
Corporation's Lackawanna, N.Y., plant. Mr. Chango worked in
various operating management positions there before being
transferred to Burns Harbor in 1983. At Burns Harbor, he
served as superintendent of the blast furnace department from
1990 to 1995 and was superintendent of the slab mill/plate
mills department from 1995 to 1997. He was promoted to senior
manager, operations, in August 1997 and to vice president,
operations, in June 1998. He was elected to his current
position on April 1, 2000. A leading steel operations expert,
Mr. Chango is a member and former director of the Western
States Blast Furnace and Coke Plant Association, having held
several elected offices with that group, and is a member of
the American Iron and Steel Institute.
------------------------------------------ ---------------------------------------------------------------------------
Stephen G. Donches Mr. Donches received a bachelor of science degree in
Vice President (Public Affairs) accounting from St. Joseph's College in 1967 and joined
Bethlehem as a member of that year's Loop Course management
training program. His initial assignment was with the tax
division of the accounting department. Mr. Donches took a
military leave of absence in 1968, served with the U.S. Army
in California and Germany and then in 1970 returned to the tax
division. In 1973 he was transferred to the public affairs
department. He was named state government affairs
representative in 1974 and senior state government affairs
representative in 1979. He was promoted to manager in 1982 and
three years later also assumed responsibility for the
corporation's corporate support programs and community
relations. Mr. Donches was appointed vice president, state and
community affairs, in 1987. He was elected vice president,
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------------------------------------------ ---------------------------------------------------------------------------
public affairs, effective November 1, 1992. He is also
president of the Bethlehem Steel Foundation and chairman of
the Bethlehem Steel Good Government Committee. He completed
the Advanced Management Program at Harvard University's
Graduate School of Business Administration in 1992.
------------------------------------------ ---------------------------------------------------------------------------
Andrew R. Futchko Mr. Futchko joined Bethlehem Steel in 1965 following graduation from The
President, Pennsylvannia Steel Pennsylvania State University with a bachelor of science degree in fuel
Technology Division technology. He was initially assigned to the fuel department in
Bethlehem's Lackawanna, N.Y., plant. In 1977 he was appointed assistant
general foreman in the plant's fuel, utilities and environmental control
department and became superintendent there in 1981. Mr. Futchko was
transferred to the Bethlehem plant in 1983 and became manager of
maintenance in November of that year. He was named manager, primary
operations and maintenance, two years later. In 1986 he was transferred
to Steelton as manager of operations, and he returned to Bethlehem as
manager of operations in August 1987. He was appointed president of the
Steelton Rail Products and Pipe Division, effective March 1, 1992. In
December 1992, Bethlehem Steel formed a wholly owned subsidiary,
Pennsylvania Steel Technologies, Inc., with Mr. Futchko as president.
Mr. Futchko is a member of the Board of Directors of the Capitol Region
United Way and the Railway Progress Institute.
------------------------------------------ ---------------------------------------------------------------------------
John L. Kluttz Mr. Kluttz graduated from the University of Virginia with a
Vice President (Union Relations) bachelor of arts degree in psychology in 1964. Three years
later he was awarded his law degree from the George Washington
University. He was an attorney with the National Labor
Relations Board in Washington, D.C., before joining Bethlehem
as a labor attorney in 1974. Two years later he was appointed
senior labor attorney and was promoted to labor counsel in
1983 and assistant general counsel in 1986. He was named vice
president, union relations, in March, 1989. He is a member of
the labor relations section of the American Bar Association
and a member of the Virginia Bar Association.
------------------------------------------ ---------------------------------------------------------------------------
Carl F. Meitzner Mr. Meitzner received his bachelor and master of science
Vice President (Strategic Planning and degrees in metallurgical engineering in 1961 and 1965, and his
International Business) doctorate in metallurgy and materials science in 1968, all
from Lehigh University. Dr. Meitzner began his career with
Bethlehem in 1965 as an engineer in the alloy development
section of research and advanced through the years, becoming
manager of product metallurgy in 1974 and manager of corrosion
------------------------------------------ ---------------------------------------------------------------------------
------------------------------------------ ---------------------------------------------------------------------------
and coatings research in 1980. In 1982 Dr. Meitzner was
appointed director, project analysis, in the planning
department and two years later was promoted to manager of
corporate strategic planning. In 1985 he was named vice
president and general manager, international affairs, for
Bethlehem Steel International Corporation, a wholly owned
subsidiary, with responsibility for the overall planning and
coordination of the international activities of Bethlehem's
businesses. He subsequently served as general manager of
Bethlehem's affiliated ore and water transportation operations
until returning to the planning department as general manager
in November 1988. He was elected vice president, planning,
effective May 1, 1991, with responsibility for all aspects of
Bethlehem's planning function, including economic studies,
business planning, strategic planning, forecasting and
internal reporting, competitive intelligence, and coordination
of joint venture and analytical studies.
------------------------------------------ ---------------------------------------------------------------------------
Van R. Reiner Mr. Reiner's career with Bethlehem Steel has included
President, Sparrow Points Division management responsibility for the coke ovens and slab
mill/plate mills at the firm's Burns Harbor Division in
Indiana and at the Galvanized Products Division, an operating
unit of Burns Harbor located in Lackawanna, New York. Prior to
being selected as president of the Bethlehem Lukens Plate
Division, he was senior manager of operations for the Burns
Harbor Division. Mr. Reiner joined Bethlehem in 1974, and
spent the first ten years of his career as an engineer in the
coke oven department at the firm's former Lackawanna, New
York, plant. In 1984 he was transferred to Burns Harbor as
assistant superintendent of cokemaking operations. Four years
later he was named assistant superintendent of the slab
mill/plate mills department at Burns Harbor and in 1990
advanced to superintendent of that operation. In 1995 Mr.
Reiner was named superintendent of the Galvanized Products
operation. Then, in August 1997, he was promoted to senior
manager, operations, for the Burns Harbor Division. Mr. Reiner
holds a bachelor's degree in chemistry from Wittenberg
University and a master's degree in chemistry from Lehigh
University. He has also completed executive education programs
at Duke University and the Wharton School of Business at the
University of Pennsylvania.
------------------------------------------ ---------------------------------------------------------------------------
Malcolm J. Roberts Mr. Roberts holds a bachelor's degree in metallurgical
Vice President and Chief Technology engineering and a doctorate in metallurgical engineering, both
Officer from the University of Liverpool. He joined Bethlehem Steel as
a research engineer in 1967 and was promoted to supervisor of
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------------------------------------------ ---------------------------------------------------------------------------
product metallurgy in 1971 and to section manager in 1979. In
1982, he was named research manager, construction steels and
manufactured products, and two years later was named associate
director of research. He was appointed director of research in
1985. He was elected vice president, technology and chief
technology officer in May 1996. Dr. Roberts is a member of the
American Iron and Steel Institute, the Iron and Steel Society,
the Association of Iron and Steel Engineers, and the
Industrial Research Institute.
------------------------------------------ ---------------------------------------------------------------------------
Dorothy L. Stephenson Ms. Stephenson received her undergraduate degree from the
Vice President (Human Resources) University of Kentucky and her law degree from the University
of Louisville. From 1974 to 1976, she served as a trial
attorney in Region 5 of the National Labor Relations Board in
Baltimore, Md. She joined Bethlehem Steel as a labor attorney
in 1976. She was promoted to senior attorney in 1987, to labor
counsel in 1989, and to general manager, union relations, in
1990. In 1994, Ms. Stephenson was appointed manager of human
resources at Bethlehem Structural Products. That same year she
completed the Advanced Management Program at Harvard
University's Graduate School of Business Administration. She
was elected vice president, human resources, for Bethlehem
Steel in May, 1996. Ms. Stephenson is admitted to the bar in
Pennsylvania and is a member of the American Bar Association
and its Labor Law Section, the Pennsylvania Bar Association
and the Northampton County Bar Association. She currently
serves on the Board of the Kemerer Museum. In 1991, she was
accepted into the YWCA's Academy of Women Achievers, a
national organization honoring women of exceptional
achievement.
------------------------------------------ ---------------------------------------------------------------------------
SCHEDULE 8
ESTIMATED AMOUNT OF WEEKLY PAYROLL TO EMPLOYEES
EXCLUSIVE OF OFFICERS, DIRECTORS AND SHAREHOLDERS
FOR THE 30-DAY PERIOD FOLLOWING THE COMMENCEMENT DATE
CERTAIN AMOUNTS PROPOSED TO BE PAID BY THE
DEBTORS FOR SERVICES FOR THE 30-DAY
PERIOD FOLLOWING THE COMMENCEMENT DATE
------------------------------------------------------------ ---------------------------------------------------------
Payments to Officers, Directors and Stockholders Payments to Business Consultants
------------------------------------------------------------ ---------------------------------------------------------
Directors $ 108,750 $1,000,000
Officers $ 521,250
------------------------------------------------------------ ---------------------------------------------------------
SCHEDULE 10
DEBTORS ESTIMATED CASH DISBURSEMENTS AND RECEIPTS
FOR THE 30-DAY PERIOD FOLLOWING THE COMMENCEMENT DATE
Estimated Cash Receipts (dollars in millions)
From Sales $290.0
From Asset Disposition 0
Other 0
Total Receipts $290.0
Estimated Cash Disbursements
Net Payroll 55.5
Payroll Taxes 13.0
Active and Retiree Benefits 38.3
Raw Materials 77.0
Transportation 23.0
Utilities 24.0
Outside Processing 17.0
Maintenance, Services, Other 14.0
Financings 8.8
Professional Fees 3.4
Administrative Costs, T&E, Supplies 1.0
Total Disbursements $275.0
Estimated Net Cash Gain (Use) $ 15.0
Exhibit 99.3
Bethlehem Steel Corporation
1170 Eighth Avenue
Bethlehem, PA 18016-7699
Media Contact:
Bette Kovach (610) 694-3711
Investor Relations Contact:
Jeff Faloba (610) 694-2206
Internet Homepage Address:
www.bethsteel.com
FOR IMMEDIATE RELEASE
BETHLEHEM STEEL ANNOUNCES THIRD QUARTER 2001 RESULTS
BETHLEHEM, Pa., Monday, October 15, 2001 - Bethlehem Steel Corporation
today reported a net loss for the third quarter of 2001 of $152 million or $1.25
per diluted common share. Bethlehem's third quarter results include a $40
million charge for the closure of our Lackawanna, New York coke facility, offset
by a $22 million gain from the sale of our equity interest in MBR, a Brazilian
iron ore property. Excluding these unusual items Bethlehem's third quarter net
loss was $134 million, or $1.11 per diluted common share. This compares with a
net loss for the third quarter of 2000 of $35 million or $.34 per diluted common
share.
Sales for the third quarter of 2001 were about $825 million compared to
$989 million for the same period last year. Prices on a constant mix basis
declined about $40 per ton, shipments declined about 117,000 tons and our
product mix was worse.
Excluding unusual items mentioned above, our loss from operations was
$109 million for the third quarter of 2001 compared to $14 million for the same
period last year. This decline was caused principally by lower realized prices
that on a constant mix basis were down by about 9%.
Our third quarter 2001 loss from operations of $109 million was $14
million more than the second quarter of 2001. This larger loss was a result of a
9% decline in shipments and a further decline in realized prices.
"The U.S. economy has slowed considerably during the past year and the
events of September 11 have contributed to a further weakening in demand for
consumer products that rely on steel such as automobiles, appliances and
residential construction," said Robert S. Miller, Jr., Chairman and Chief
Executive Officer of Bethlehem Steel Corporation. "While we believe that the
recent interest rate cuts by the Federal Reserve and the federal income tax cut
will help to support consumer spending, we currently believe that the economy
and steel market conditions will remain weak through about the middle of next
year."
Mr. Miller said "we continue to be concerned about the high level of
excess world steel capacity and the threat it poses for continued high levels of
unfairly traded steel imports. We remain encouraged by the investigation by the
International Trade Commission under Section 201 of the Trade Act of 1974
concerning the injury caused by steel imports on the U.S. steel industry and the
negotiations between governments to eliminate inefficient excess capacity in the
steel industry worldwide and to eliminate underlying market-distorting
subsidies."
In a separate release today, Bethlehem announced that it has filed a
voluntary petition under Chapter 11 of the Federal Bankruptcy Code in the United
States Bankruptcy Court for the Southern District of New York. Bethlehem is
seeking protection under Chapter 11 to provide the necessary time to stabilize
the Company's finances and to implement a strategic plan to return Bethlehem to
sustained profitability. Key objectives of the plan will include improving the
Company's capital structure, working with the United Steelworkers of America
(USWA) to improve productivity and further reduce costs, particularly employment
and healthcare costs, and finding a solution to its approximately $3 billion
retiree healthcare obligation.
For further information, see Bethlehem Steel's Form 8-K filed today
with the Securities and Exchange Commission and Bethlehem Steel's website at
www.bethsteel.com. A broadcast of remarks by Robert S. Miller, Bethlehem's
Chairman and CEO can be listened to live over the Internet today at 12:30 p.m.
EDT and can be accessed through Investor Broadcast Networks' V-call website at
www.vcall.com. It will also be available on Bethlehem's website for two weeks
after the broadcast by clicking on the "investor relations / financial" menu
button and then clicking on the "conference call" button.
2
Bethlehem Steel Corporation
CONSOLIDATED STATEMENTS OF EARNINGS
(dollars and shares in millions, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
------------------------------ ----------------------------
2001 2000 2001 2000
------------- ------------ ----------- ------------
$ 825.4 $ 988.8 Net Sales $ 2,614.4 $ 3,215.9
------------- ------------ ----------- ------------
Costs and Expenses
844.0 923.8 Cost of sales 2,670.0 2,910.3
64.7 61.4 Depreciation 189.9 199.9
26.2 27.5 Selling, administration and general expense 80.2 85.5
17.8 - Unusual items (Note 3) 21.2 (26.9)
------------- ------------ ----------- ------------
952.7 1,012.7 Total Costs and Expenses 2,961.3 3,168.8
------------- ------------ ----------- ------------
(127.3) (23.9) Income (Loss) from Operations (346.9) 47.1
Financing Income (Expense):
(25.3) (19.5) Interest and other financing costs (73.5) (51.9)
0.4 1.3 Interest and other income 1.9 4.6
------------- ------------ ----------- ------------
(152.2) (42.1) Loss before Income Taxes (418.5) (0.2)
- 7.3 Benefit (Provision) for Income Taxes (984.0) -
------------- ------------ ----------- ------------
(152.2) (34.8) Net Loss (1,402.5) (0.2)
10.2 10.2 Dividends on Preferred and Preference Stock 30.6 30.6
------------- ------------ ----------- ------------
$ (162.4) $ (45.0) Net Loss Applicable to Common Stock $ (1,433.1) $ (30.8)
============= ============ =========== ============
Net Loss per Common Share:
$ (1.25) $ (0.34) Basic and Diluted $ (11.02) $ (0.23)
Average Shares Outstanding:
130.2 132.1 Basic and Diluted 130.0 131.6
Additional Data
1,929 2,046 Steel products shipped (thousands of net tons) 6,074 6,669
2,252 2,470 Raw steel produced (thousands of net tons) 6,942 7,702
3
Safe Harbor:
Certain statements in this release are forward-looking statements within the
meaning of the Private Securities Reform Act. Actual results may differ
materially from those indicated in such statements due to a number of factors,
including challenges arising from Bethlehem Steel's Chapter 11 filing, changes
in consumer spending patterns and in demand for steel products. Additional
factors that may affect the business and financial results of Bethlehem Steel
are the effect of planned and unplanned outages on Bethlehem Steel's operations;
the potential impact of strikes or work stoppages at facilities of Bethlehem
Steel's customers and suppliers; the sensitivity of Bethlehem Steel's results to
relatively small changes in the prices obtained by Bethlehem Steel for its
products; intense competition due to world steel overcapacity, low-cost electric
furnace facilities, unfairly-traded imports and substitute materials; the
consolidation of many of Bethlehem Steel's customers and suppliers; the high
capital requirements associated with integrated steel facilities; the
significant costs associated with environmental controls and remediation
expenditures and the uncertainty of future environmental control requirements;
availability and prices associated with raw materials, supplies, utilities and
other services and items required by Bethlehem Steel's operations; employment
matters, including costs and uncertainties associated with Bethlehem Steel's
collective bargaining agreements, and employee postretirement obligations; the
effect of possible future closure or exit of businesses; Bethlehem Steel's
highly leveraged capital structure and its ability to obtain new capital at
reasonable costs and terms; financial difficulties encountered by joint venture
partners; and the effect of existing and possible future lawsuits against
Bethlehem Steel. The forward-looking statements included in this document are
based on information available to Bethlehem Steel as of the date of this
release, and Bethlehem Steel assumes no obligation to update any of these
statements.
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