http://cnnfn.cnn.com/2000/12/29/companies/ltv/index.htm

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LTV files for Chap. 11 No. 3 U.S. steelmaker seeks bankruptcy protection, could affect 18K workers December 29, 2000: 10:32 a.m. ET

NEW YORK (CNNfn) - LTV Corp., the third-largest U.S. steelmaker, filed for Chapter 11 bankruptcy protection Friday, a move which could affect 18,000 workers.

LTV said it has filed for protection and reorganization in federal court due to "a weakening U.S. economy and the inaction of the government in enforcing long-established U.S. trade laws."

The company has blamed its widening losses on price pressure from cheap imported steel. In Chapter 11, a company is protected from its creditors while it tries to reorganize and repay its debts.

[graphic] ABOUT LTV CORP. No. 3 U.S. steelmaker, based in Cleveland; reported $80 million loss in third quarter. Employees: about 18,000 Plants: more than 50 Retirees: more than 70,000 LTV warned in its filing it may be forced to shut down all of its plants, lay off all 18,000 employees and begin to sell core assets.

But LTV Chairman, President and CEO William Bricker said in a statement "the doomsday scenario" can be avoided if the company can obtain further financing.

The filing comes after the company failed to receive $225 million in loans from Chase Manhattan Bank (CMP: Research, Estimates).

Cleveland-based LTV (LTV: Research, Estimates) is the ninth U.S. steel company to enter bankruptcy in just the past two years.

In late October, LTV reported a third-quarter loss of $80 million, larger than expected by Wall Street, and losses for the first nine months of the year totaled $368 million. The company also said it was in the process of cutting 3,600 steel jobs. Nearly two weeks later, the board forced out LTV Chairman, President and CEO Peter Kelly, replacing him with Bricker.

Trading of LTV stock was halted Friday morning on the New York Stock Exchange.

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