Bethlehem Steel Board Votes to Sell to International Steel Group.Business Editors BETHLEHEM, Pa.--(BUSINESS WIRE)--Feb. 8, 2003 The board of directors of Bethlehem Steel The Bethlehem Steel Corporation (1857–2003), based in Bethlehem, Pennsylvania, once was the second largest steel producer in the United States (after Pittsburgh, Pennsylvania-based US Steel). Corporation voted this afternoon to sell substantially all of the company's assets to the International Steel Group (ISG ISG Iraq Study Group ISG Iraq Survey Group ISG International Steel Group ISG Integrated Security Gateway ISG Information Systems Group ISG Information Systems Group (IBM) ISG Integrated Starter/Generator ), which has headquarters in Cleveland, Ohio "Cleveland" redirects here. For the Cleveland metropolitan area, see . For other uses, see Cleveland (disambiguation). Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, the most populous county in the state. . "Following the board's affirmative vote this afternoon, Bethlehem will move quickly to finalize the asset purchase agreement with ISG to complete this sale early in the second quarter of this year," said Robert S. Miller Robert S. (Steve) Miller; Was hired as Delphi chairman by General Motors and Delphi Corp. to file bankruptcy. Miller was hired to slash costs and close unprofitable operations. Miller - a restructuring expert who was hired in July 2005 filed Saturday, October 8 2005. , Bethlehem's chairman and chief executive officer. "This sale will provide a new beginning for our employees and our operations, which will continue without interruption during the change of ownership. ISG highly values Bethlehem's assets, which is good news for our employees, customers, suppliers and communities. "The domestic steel industry is changing rapidly as several transactions are underway to consolidate the nation's firms and make them more internationally competitive. The sale of Bethlehem to ISG will create North America's largest steel company and will help our operations remain a vibrant part of a reinvigorated re·in·vig·o·rate tr.v. re·in·vig·o·rat·ed, re·in·vig·o·rat·ing, re·in·vig·o·rates To give new life or energy to. re steel industry. "With this change of ownership also comes some sadness. Bethlehem can no longer pay the health care and life insurance benefits for its retirees. Regrettably, expectations of life-long benefits were made during an era when health care costs were lower and the company's financial condition was stronger. Bethlehem continued to honor that commitment for the past 16 months after the corporation filed for Chapter 11 bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. protection. Since then, Bethlehem paid retiree health bills of more than $300 million -- benefits that many companies shed immediately after declaring bankruptcy. In either reorganization scenario of a stand-alone company stand-alone company An independent operating firm. For example, a large diversified firm may consider spinning off a subsidiary because, as a stand-alone company, the subsidiary would command a higher price-earnings ratio than the parent. or a sale, Bethlehem's retired population would lose their health care and life insurance benefits. As we are concluding our bankruptcy process, it is the appropriate time to terminate these benefits," Mr. Miller concluded. |
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