Exhibit 20
NEWS RELEASE
from LACLEDE STEEL COMPANY
440 N. FOURTH STREET
ST. LOUIS, MO 63102
TELEPHONE: (314) 425-1400
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January 2, 2001
Michael H. Lane
Executive Vice President
(314) 425-1505
LACLEDE STEEL COMPANY EMERGES FROM BANKRUPTCY
St. Louis, Missouri . . . Laclede Steel Company announced today that it has
finalized a new $61.5 million revolving credit and term loan facility to fund
its operations and capital improvement program. With this new financing
agreement in place the Company has completed all of the steps required for
successful reorganization, and has emerged from bankruptcy.
Under terms of the Plan of Reorganization all of the Company's previously
outstanding preferred and common stock has been cancelled. Unsecured creditors
on November 30, 1998, the date the Company filed for bankruptcy protection,
receive the majority of the new company 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.
As a result of the financial restructuring accomplished as part of the Plan
of Reorganization, Laclede emerges from bankruptcy with a significant
improvement in financial liquidity. The Company intends to begin implementation
of the capital improvement program at its Alton, IL and Fairless Hills, PA
plants. These investments will enable Laclede to better serve its customers
while reducing production costs.
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 financial liquidity; statements
related to the Company's Plan of Reorganization; statements related to the
Company's capital improvement program.
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 financial liquidity, statements related to the Company's Plan of
Reorganization, and statements related to the Company's capital improvement
program.
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