Birmingham Steel Corporation Receives Approval Of First-Day Motions.Business Editors BIRMINGHAM, Ala.--(BUSINESS WIRE)--June 4, 2002 On May 30, 2002, Birmingham Steel Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:BIRS BIRS Banff International Research Station (Canada) BIRS Banca Internazionale per la Ricostruzione e lo Sviluppo (Italian) BIRS Basic Indexing and Retrieval System BIRS Battlefield Information Reporting System ) announced it had reached a definitive agreement to sell substantially all of its assets to Nucor Corporation (NYSE NYSE See: New York Stock Exchange :NUE NUE Nitrogen Use Efficiency NUE Nuremberg, Germany - Nuremberg (Airport Code) NUE Non-Upset Ends (piping) ) for $615 million in cash. On June 3, 2002, pursuant to the terms of the definitive agreement, Birmingham Steel filed a Chapter 11 bankruptcy proceeding before the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. 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. for the District of Delaware for purposes of confirming and implementing the sale to Nucor. Today, the Company said the Court approved "first-day" motions requested by Birmingham Steel, including approvals for a $40 million debtor-in-possession facility and for payment of certain pre-petition accounts payable to critical suppliers. The Company said its first-day motions were supported by its secured lender group. The Company said it expects to have sufficient liquidity to operate in the normal course until the Nucor transaction closes. Subject to certain conditions which include further approvals by the Court and regulatory authorities, the transaction is expected to close by December 31, 2002. Birmingham Steel operates in the mini-mill sector of the steel industry and conducts manufacturing, distribution and recycling operations in facilities located across the United States. The common stock of Birmingham Steel is traded on the over the counter bulletin board under the symbol "BIRS." Except for historical information, the matters described in this press release are forward-looking statements within the meaning the safe-harbor provisions of the Private Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Action of 1995. These forward-statements are subject to risks and uncertainties that may cause actual results to differ materially, including economic conditions, market the main factors, equipment breakdowns or failures, the Company's continued compliance with its financing arrangements and its principle debt agreements, as well as other risks described from time to time in the Company's periodic and special filings with the Securities and Exchange Commission. The forward-looking statements contained in this document speak only as the date hereof, and the Company disclaims any intent or obligation to update such forward-looking statements. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion