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LTV PENSION FUNDING SUBSTANTIALLY IMPROVED

 WASHINGTON, June 28 /PRNewswire/ -- With its emergence from bankruptcy today, the LTV Corporation (NYSE: QLTV) made a $787 million cash payment to its pension plans, part of a nearly $2 billion initial infusion to three pension plans insured by the Pension Benefit Guaranty Corporation (PBGC). Today's payment begins the process of eliminating a $3 billion shortfall in the pension plans, based on a payment schedule included in LTV's plan of reorganization.
 LTV's pension plans will remain ongoing, and 100,000 participants, including nearly 60,000 retirees, will receive full benefits, as a result of a settlement PBGC had reached with LTV and its creditors.
 "This is a tremendous success story for LTV, workers, retirees and the PBGC. This landmark case demonstrates that companies can restructure, preserving jobs and benefits for workers and retirees, with the creative and combined efforts of the company the creditors, and PBGC," said Secretary of Labor Robert B. Reich, who is chairman of PBGC's board of directors.
 In addition to today's payment, LTV will contribute to the plans approximately $100 million in LTV equity and up to $700 million of cash proceeds from miscellaneous assets, as received. This includes the proceeds resulting from certain railroad litigation, which could be as high as $480 million. LTV had earlier contributed $356 million toward the pension liability.
 LTV will pay the remainder of the pension obligation over 28 years under a flexible funding schedule, which calls for a minimum annual contribution of $30 million through 1997 and a minimum of $50 million a year after 1997. Additional contributions will be made based on LTV's annual cash flow.
 PBGC will monitor the pension plans closely as the company goes forward and continues the necessary funding of the plans.
 In anticipation of today's events, the district court on June 16 approved a request by the parties to vacate prior bankruptcy court and district court decisions that had held that LTV did not have to make pension contributions while in bankruptcy and that bankruptcy laws and not pension laws governed the interest rate assumptions used in determining LTV's pension liability.
 "LTV's emergence from bankruptcy with its pension plans intact should be reassuring to American workers and retirees. Pensions are secure when companies and their creditors work together, with PBGC, to keep benefits funded," said PBGC Executive Director Martin Slate.
 Slate also cited former PBGC Executive Directors James B. Lockhart and Kathleen P. Utgoff, and General Counsel Carol Connor Flowe, for their roles in restoration of the pension plans and in advancing the subsequent settlement.
 When LTV declared bankruptcy in 1986, it announced that termination of four pension plans, which at the time were underfunded by $2.5 billion, was essential for the company's reorganization. PBGC took over the plans but returned three of them to the company in 1987, citing LTV's improved financial condition and establishment of unlawful "follow-on" benefit arrangements that provided full pension packages but left PBGC paying most of the cost.
 Three years of litigation ensued, ending in June 1990 when the U.S. Supreme Court, in an 8-1 decision, upheld PBGC's authority to restore responsibility for funding and administering the pension plans to LTV.
 PBGC is a federal insurance corporation created by the Employee Retirement Income Security Act of 1974 to guarantee payment of basic pension benefits earned by American workers and retirees participating in private defined benefit pension plans. PBGC administers two insurance programs, which cover more than 41 million workers in about 67,000 plans.
 -0- 6/28/93
 /CONTACT: Judith E. Bekelman, director, communications & public affairs, or Andy Gasparich, public affairs officer, Pension Benefit Guaranty Corporation, 202-778-8840/
 (QLTV)


CO: Pension Benefit Guaranty Corporation; LTV Corporation ST: District of Columbia, Ohio IN: FIN INS MNG SU:

DC-IH -- DC021 -- 6295 06/28/93 13:40 EDT
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Date:Jun 28, 1993
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