CLEVELAND, Sep 27, 2001 /PRNewswire via COMTEX/ -- The LTV Corporation (OTC Bulletin Board: LTVCQ chart, msgs) today reported that National City Bank and Key Bank, headquartered in Cleveland, have submitted applications for federal guarantees for $250 million of loans for LTV Steel. The federal guarantees are provided under the Emergency Steel Loan Guarantee Program.
"National City and Key have become invaluable partners in our efforts to save LTV Steel and the jobs and benefits of thousands of employees, their families and retirees," said William H. Bricker, chairman and chief executive officer of The LTV Corporation. "The combination of the federal government's guarantee and assistance provided by the City of Cleveland, Cuyahoga County, the State of Ohio, and a supplier now total 98% of the loan. We are extremely grateful to these parties for their support of our company and their confidence in our employees' commitment to make LTV Steel a viable, profitable asset to this region," he said.
LTV said that the loan guarantee application must be approved by the Federal Emergency Steel Loan Guarantee Board. A decision is expected in 30 to 60 days.
"We are confident, given the unprecedented levels of public and private support for this loan, that the Loan Guarantee Board will recognize the critical importance of this loan to thousands of people in communities throughout the Midwest. LTV Steel, through an aggressive restructuring plan, is reducing costs to levels that will enable it to compete in a steel marketplace that has been forever changed by imports and lower-cost, non-union domestic competitors. This loan is indispensable to our efforts to achieve this new level of competitiveness and long-term success," Mr. Bricker said.
Proceeds from the loan will be used for critical capital investments and financing related to the Company's restructuring and operation of the integrated steel business.
LTV Steel employs approximately 4,000 people in the Cleveland area and about 7,800 people nationwide |
