The ratification of the contract was the final step necessary for WCI to emerge from bankruptcy reorganization. On March 30, U.S. Bankruptcy Judge Marilyn Shea-Stonum signed orders confirming a Plan of Reorganization for WCI.
Patrick G. Tatom, WCI's president and chief executive officer, said the affirmative ratification vote, along with the support of the company's new ownership group led by the Harbinger Capital Partners Master Fund I, Ltd., will help build the reorganized WCI Steel as a strong, independent custom flat-rolled producer.
"WCI will emerge with a new $150 million line of credit, an additional $50 million investment by our new ownership group and a competitive labor agreement that will significantly improve the efficiency and cost structure of our company," Tatom said.
He noted that the WCI Steel, Inc. name will be kept, saying that the company has cultivated a strong reputation in the industry for providing high- quality steel and superior customer service.
"WCI's core value of running a customer-oriented company will remain our primary driver in decision making, especially as we implement new work systems in the plant," Tatom said. "Our dedication to customer satisfaction will be key in determining our future success."
WCI would not have been able to reorganize without the loyalty of customers who supported WCI over the last 30 months, Tatom said, adding that the backing of vendors, employees and the community was crucial to WCI's successful restructuring.
WCI filed a voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code on Sept. 16, 2003.
WCI is an integrated steelmaker producing more than 185 grades of custom and commodity flat-rolled steel at its Warren, Ohio facility. WCI products are used by steel service centers, convertors and the automotive and construction markets. The company has approximately 1,600 employees.
