Nov 7 2002
Following a profitable period during September, National Steel has been granted an extension for lodging its plan for reorganisation. National steel recorded a $7.3 million profit in September to reduce their March through August deficit of $38 million.
National Steel originally filed for Chapter 11 bankruptcy on March 6. They now have an additional 5 months, until April 5 to lodge their plans.
National Steel also applied for the extension as they are involved in talks with a potential buyer. While the buyer was not named, industry insiders believe the potential purchaser to be US Steel Corp. This deal however, is dependent on the negotiation of a new labour agreement that will reduce the company’s retiree and health care costs.
National Steel has also been negotiating with the Steelworkers Union on a stand-alone plan.
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