Court Approves Rouge Industries Sale to Severstal
December 22 2003 - 4:23PM
PR Newswire (US)
Court Approves Rouge Industries Sale to Severstal DEARBORN, Mich.,
Dec. 22 /PRNewswire-FirstCall/ -- Rouge Industries, Inc. today
announced that the United States Bankruptcy Court for the District
of Delaware in Wilmington (the "Court") has approved the sale to
Severstal of substantially all of the Company's assets pursuant to
the terms of the asset purchase agreement between the parties. As
previously announced, Severstal emerged as the highest and best
bidder in a competitive auction held on December 19, 2003 for
substantially all of the Company's assets, subject to bankruptcy
court approval. The Company expects to use the proceeds of the sale
to repay its creditors and to fund administrative expenses.
Accordingly, there will not be any amounts available to be
distributed to the Company's stockholders from the sale. Completion
of the transaction remains subject to certain conditions with a
final closing expected by January 30, 2004. On October 23, 2003,
Rouge Industries, Inc., including its subsidiaries Rouge Steel
Company, QS Steel Inc. and Eveleth Taconite Company, filed
voluntary petitions for protection under Chapter 11 of the United
States Bankruptcy Code in the Court. Rouge Steel Company continues
to operate its Dearborn, Michigan steel making facilities and serve
its customers. Safe Harbor Statement This press release contains
forward-looking information about the Company. A number of factors
could cause the Company's actual results to differ materially from
those anticipated, including changes in the general economic or
political climate, the supply of or demand for and the pricing of
steel products in the Company's markets, plant operating
performance, product quality, potential environmental liabilities,
the availability and prices of raw materials, supplies, utilities
and other services and items required by the Company's operations,
the level of imports and import prices in the Company's markets,
the availability of sufficient cash to support the Company's
operations and higher than expected costs. For further information
on these and other factors that could impact the Company and the
statements contained herein, reference should be made to the
Company's filings with the Securities and Exchange Commission.
DATASOURCE: Rouge Industries, Inc. CONTACT: Phyllis J. Holmes,
analysts, +1-313-323-2765, or William E. Hornberger, media,
+1-313-323-1850, both of Rouge Industries, Inc. Web site:
http://www.rougeindustries.com/
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