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EXHIBIT 20
NEWS RELEASE
from LACLEDE STEEL COMPANY
440 N. FOURTH STREET
ST. LOUIS, MO 63102
TELEPHONE: (314) 425-1400
December 18, 2000
Michael H. Lane
Executive Vice President
(314) 425-1505
ST. LOUIS, MISSOURI . . . Laclede Steel Company announced that on
December 15, 2000 the United States Bankruptcy Court confirmed its Plan of
Reorganization. In order for the Plan to become effective, the Company must
complete negotiations for and enter into a new secured loan facility. These
negotiations are not yet final, and the lending syndicate is not yet complete.
However, the Company is optimistic that the loan will be finalized by the end of
the year 2000.
Under terms of the Plan of Reorganization all of the Company's
currently outstanding preferred and common stock will be cancelled on the
effective date. Unsecured creditors on November 30, 1998, the date the Company
filed for bankruptcy protection, will receive the majority of the new common
stock. Company employees will also be issued common stock in accordance with the
terms of a new Labor Agreement, negotiated with the United Steelworkers of
America.
The Company also announced that on December 18, 2000 its subsidiary,
Laclede Mid-America, Inc., completed the sale of substantially all of its assets
to Leggett & Platt, Incorporated. The sale of these assets was an important
condition of the Company's Plan of Reorganization. The proceeds of the sale,
together with the new lending facility, will be used to fund the Company's
operations and capital program after emergence from bankruptcy.
The foregoing Press Release contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, which represent
Laclede Steel Company's expectations or beliefs concerning future events:
specifically, statements involving the Company's exit financing; statements
related to the Company's Plan of Reorganization.
Forward-looking statements by Laclede Steel Company and its management are based
on beliefs and assumptions and are not guarantees of future performance. The
Company disclaims any obligation to update or revise any forward-looking
statement based on the occurrence of future events, the receipt of new
information, or otherwise. The Company cautions that these and similar
statements included in this press release are qualified by important factors
that could cause actual results to differ materially from those in the
forward-looking statement, including, without limitation, statements involving
the Company's exit financing; statements related to the Company's Plan of
Reorganization.
