Cliffs Comments On Bankruptcy Filing by LTV Corporation.Business Editors CLEVELAND--(BUSINESS WIRE)--Dec. 29, 2000 Cleveland-Cliffs Inc (NYSE NYSE See: New York Stock Exchange :CLF CLF The ISO 4217 currency code for Chile Unidades de Fomento. ) said today that the impact on Cliffs of the Chapter 11 filing by The LTV LTV See: Loan-to-value ratio Corporation (NYSE:LTV) will depend upon the specific actions undertaken by LTV. With the planned closure of LTV's wholly-owned iron ore mine in Minnesota at the end of February 2001, LTV is expected to be a major iron ore customer of Cliffs in 2001 and beyond under a multi-year sales contract Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. , signed earlier this year. Cliffs officials said that the Company does not have significant trade accounts receivables under this sales contract with LTV at this time. LTV is also a 25-percent partner in the Cliffs-managed Empire Mine in the Upper Peninsula of Michigan The Upper Peninsula of Michigan is the northern of the two major land masses that comprise the U.S. state of Michigan. It is commonly referred to simply as the Upper Peninsula, the U.P., or Upper Michigan, and more casually as the land "above the Bridge". . John S. Brinzo, Cliffs chairman and chief executive officer, said, "There are substantial contractual obligations and management relationships between Cliffs and LTV. At this time, it is premature to speculate on the impact on Cliffs or the Empire Mine. However, non-performance by LTV on these obligations could have a significant impact on Cliffs and/or the Empire Mine." Brinzo further said, "We have a long and valued relationship with LTV which we expect to continue. We are deeply disturbed that yet another U.S. steel company has been forced to file for protection under Chapter 11 of the U.S. bankruptcy laws. Unless rapid actions are taken to halt unfairly traded steel imports, and soaring, uncontrolled natural gas prices, we will continue to witness the destruction of the domestic steel industry." Cleveland-Cliffs is the largest supplier of iron ore products to the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. steel industry and is developing a significant ferrous metallics business. Subsidiaries of the Company manage six iron ore mines in North America and hold equity interests in five of the mines. Cliffs has a major iron ore reserve position in the United States and is a substantial iron ore merchant. References in this news release to "Cliffs" and "Company" include subsidiaries and affiliates as appropriate in the context. This news release contains predictive statements with respect to the LTV bankruptcy that are intended to be made as "forward-looking" within the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. protections of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Although the Company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties. Actual results may differ materially from such statements due to the actions which LTV may take, the development of LTV's Chapter 11 case, and economic and market conditions of LTV. The information contained in this document speaks as of the date of this news release and may be superseded by subsequent events. News releases and other information on the Company are available on the Internet at http://www.cleveland-cliffs.com. |
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