Attached files
file | filename |
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8-K - FORM 8-K - LTV CORP | l40282e8vk.htm |
Exhibit 99.1
TRANSMITTAL OF FINANCIAL REPORTS AND
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS
FOR THE LTV INTEGRATED STEEL BUSINESS FOR THE PERIOD ENDED
JUNE 30, 2010
CERTIFICATION OF COMPLIANCE WITH
UNITED STATES TRUSTEE OPERATING REQUIREMENTS
FOR THE LTV INTEGRATED STEEL BUSINESS FOR THE PERIOD ENDED
JUNE 30, 2010
: | ||||
In re:
|
: | Chapter 11 | ||
: | ||||
LTV STEEL COMPANY, INC.,
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: | Jointly Administered | ||
A New Jersey corporation, et al.,
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: | Case No. 00-43866 | ||
: | ||||
Debtors.
|
: | Chief Judge Randolph Baxter |
As President and Treasurer of The LTV Corporation (LTV), a corporation organized under the
laws of the State of Delaware and one of the debtors and debtors in possession in the
above-captioned Chapter 11 cases (collectively, the Debtors), I hereby affirm that:
1. I have reviewed the following Integrated Steel Business financial reports for June 2010
attached hereto (collectively, the Statements) Cash Receipts and Disbursements and Debtors
Cash Account Balances.
2. The Statements are based on the Debtors books and records maintained in the ordinary
course of business. The statements have been prepared in accordance with normal and customary
accounting practices and fairly and accurately reflect the relevant information for the applicable
period.
3. The insurance described in Section 4 of the Operating Instructions and Reporting
Requirements for Chapter 11 Cases (the Operating Instructions) issued by the U.S. Trustee remains
in force.
4. All postpetition taxes, as described in Sections 1 and 14 of the Operating Instructions,
and due prior to the commencement of the LTV Steel Asset Protection Plan, are current and have been
paid in the ordinary course of business.
5. No professional fees have been paid without specific Court authorization.
The Statements were prepared by LTV under my direction and supervision. LTV verifies that, to
the best of its knowledge, the information set forth in the Statements is true and correct.
Dated: July 14, 2010 |
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/s/ John T. Delmore | ||||
John T. Delmore President and Treasurer The LTV Corporation |
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The LTV Corporation
Integrated Steel Business
Cash Receipts and Disbursements June 2010
(Unaudited)
($ in Thousands)
Integrated Steel Business
Cash Receipts and Disbursements June 2010
(Unaudited)
($ in Thousands)
Receipts |
$ | 5 | ||
Disbursements: |
||||
Labor |
16 | |||
Non-labor administrative expenditures |
15 | |||
Insurance/Taxes |
| |||
Other |
| |||
Chapter 11 Professionals |
232 | |||
Total |
263 | |||
Receipts less Disbursements |
(258 | ) | ||
Beginning cash balance |
8,465 | |||
Ending cash balance |
$ | 8,207 | ||
See accompanying notes to Cash Receipts and Disbursements Schedule.
The LTV Corporation
Notes to Integrated Steel Business Cash Receipts and Disbursements Schedule June 2010
Notes to Integrated Steel Business Cash Receipts and Disbursements Schedule June 2010
On December 7, 2001, the Court entered an order (the APP Order) authorizing LTV Steel Company,
Inc. and its affiliated debtors
(collectively, the Debtors) to implement an asset protection plan (the APP) for the safe and
orderly cessation and winddown of their
integrated steel business over a nine-month period (the APP Period). On August 30, 2002 the
Court entered an order that, among other
things, extended the duration of the APP from September 13, 2002 to December 13, 2002. Pursuant
to the APP Order, the Debtors hot-idled
their primary integrated steel facilities in December 2001 and ceased producing steel. After
entry of the APP Order, the Debtors integrated
steel business continued to ship product that remained in inventory, collected receivables and
marketed the integrated steel assets for sale
under Court-approved sale procedures. By order dated February 28, 2002, the Court approved the
sale of substantially all of the Debtors
integrated steel assets to WLR Acquisition Corp. n/k/a International Steel Group, Inc. (ISG) for
a purchase price of approximately $80 million
(of which approximately $11 million was allocated to the purchase of the assets of certain
non-debtor railroads), plus the assumption of
certain environmental and other obligations. ISG also purchased inventories which were located at
the integrated steel facilities for
approximately $52 million. The sale of the Debtors integrated steel assets to ISG closed in
April 2002, and a second closing related to the
purchase of the inventory occurred in May 2002.
Under the APP, the Debtors paid expenditures in accordance with a budget negotiated with their
postpetition secured lenders (collectively,
the DIP Lenders) for the consensual use of cash collateral to complete the orderly wind down of
the integrated steel business, which
budget was approved by the Court on December 18, 2001 and subsequently amended from time to time
(the APP Budget). Pursuant to the
APP Budget, the Debtors were also required to fund certain expenditures for professional fees and
expenses.
On December 31, 2002, substantially all of the assets of the Pipe and Conduit Business, consisting
of LTV Tubular Company, a division of
LTV Steel Company, Inc., and Georgia Tubing Corporation, were sold to Maverick Tube Corporation
for cash of approximately $120 million
plus the assumption of certain environmental and other obligations. On October 16, 2002, the
Debtors announced that they intended to
reorganize the Copperweld Business as a stand-alone business. LTV no longer exercised any control
over the business or affairs of the
Copperweld Business. A separate plan of reorganization was developed for the Copperweld Business.
On August 5, 2003, the
Copperweld Business filed a Disclosure Statement pursuant to Section 1125 of the Bankruptcy Code
for the Joint Plan of Reorganization of
Copperweld Corporation and Certain of its Debtor Affiliates. On October 8, 2003, the Court
approved the Second Amended Disclosure
Statement. On November 17, 2003, the Court confirmed the Second Amended Joint Plan, as modified,
and on December 17, 2003 the
Effective Date occurred and the common stock was cancelled. Because The LTV Corporation (LTV)
received no distributions under the
Second Amended Plan, LTVs equity in the Copperweld Business is worthless and has been cancelled.
In November 2002, the Debtors paid the DIP Lenders the remaining balance due for outstanding loans
and in December 2002, the remaining
letters of credit were cancelled or cash collateralized. Consequently, the Debtors have no
remaining obligation to the DIP Lenders. Pursuant
to an order of the Court entered on February 11, 2003, LTV Steel has continued the orderly
liquidation and wind down of its businesses.
On October 8, 2003, the Court entered an Order substantively consolidating the Chapter 11 estates
of LTV Steel and Georgia Tubing
Corporation for all purposes.
The LTV Corporation
Notes to Integrated Steel Business Cash Receipts and Disbursements Schedule June 2010
Notes to Integrated Steel Business Cash Receipts and Disbursements Schedule June 2010
In November and December 2003, approximately $91.9 million was distributed by LTV Steel to other
Debtors pursuant to the Intercompany
Settlement Agreement that was approved by the Court on November 17, 2003. Because the amount of
secured and unsecured debt of such
other Debtors exceeds the amount of the distributions to such other Debtors, LTV s equity in such
Debtors is worthless.
On December 23, 2003, the Court entered an Order authorizing LTV Steel and Georgia Tubing to make
distributions to their administrative
creditors and, after the final distribution, to dismiss their Chapter 11 cases and dissolve. In
January 2004 an initial funding of $65 million was
made to a distribution disbursing account; distributions to administrative creditors were made
from this account in January 2004 and in June
2004. In September 2005 funding of $17.4 million was made to the distribution disbursing account
and distributions were made to
administrative creditors. In June 2006 an additional funding of $9.0 million was made to the
distribution disbursing account and distributions
made to administrative creditors. At this time, LTV Steel and Georgia Tubing are unable to
definitively estimate the amount of cash that will be
available for distribution to administrative creditors, but they will not be able to pay all of
their administrative claims in full and will not be able to
provide any recovery to the unsecured creditors of LTV Steel and Georgia Tubing. Additionally, the
value obtained from the liquidation of the
Debtors remaining assets will not be sufficient to provide any recovery for common shareholders
of LTV.
On March 31, 2005, the Court entered an order that among other things: (a) approved a distribution
and dismissal plan for LTV and certain
other debtors; (b) authorized LTV and LTV Steel to take any and all actions that are necessary or
appropriate to implement the distribution
and dismissal plan; (c) established March 31, 2005 as the record date for identifying shareholders
of LTV that are entitled to any and all
shareholder rights with respect to the distribution and dismissal plan and the eventual
dissolution of LTV (although shareholders of LTV will
not receive a distribution on account of their shares of LTVs stock) ; and (d) authorized LTV to
establish and fund a reserve account for the
conduct of post-dismissal activities and the payment of post-dismissal claims.
As previously disclosed, LTV is in the process of liquidating, and its stock is worthless. There
is no set of facts known to LTV that will
result in proceeds of asset sales exceeding LTVs known liabilities. Thus, there will be no
recovery to LTVs stockholders. Pursuant to the
March 31, 2005 Order, the record date for shareholders has been established as of March 31, 2005.
Accordingly, effective as of March 31,
2005, LTV will no longer engage the transfer agent to maintain the transfer records for LTVs
common or preferred stock.
On April 15, 2005, the Official Committee of Administrative Claimants (ACC) filed a motion with
the Court for an order authorizing the
Committee to commence and prosecute causes of action against certain officers and directors of LTV
Steel and LTV on behalf of the LTV Steel bankruptcy estate. A hearing on the motion was held in
Bankruptcy Court on June 7, 2005. A written ruling was issued on September
2, 2005 whereby the ACCs motion was granted, in part, as determined in the Courts Order. On
September 13, 2005, the ACC filed a
complaint in the United States District Court for the Northern District of Ohio (the District
Court) against certain officers and directors of LTV
Steel and LTV on behalf of the LTV Steel bankruptcy estate (the Complaint). On September 20,
2005, the Court granted a motion filed by Mr.
Moran, a former director and officer, for a stay pending appeal (the Stay Order). On January
30, 2006, the Court entered an Agreed Order
whereby, under a stipulation dated as of November 30, 2005 between the ACC and the nine named
defendants of the Complaint (collectively,
the Defendants), the Stay Order shall apply equally to the ACC and all Defendants and shall stay
the lawsuit until the disposition of Mr. Morans appeal (the Moran Appeal). Also, the parties
have the right to engage in limited discovery as permitted under terms of the stipulation. On
April 2, 2009, the ACC filed its First Amended Complaint (First Amended Complaint) and the ACC
also filed a Notice of Lifting of The
Stipulated Stay of Proceedings.
The LTV Corporation
Notes to Integrated Steel Business Cash Receipts and Disbursements Schedule June 2010
Notes to Integrated Steel Business Cash Receipts and Disbursements Schedule June 2010
On November 8, 2006, the District Court entered an order dismissing the Moran Appeal (the
Dismissal Order). On November 28, 2006, Mr.
Moran filed a notice of appeal of the Dismissal Order to the United States Court of Appeals for
the Sixth Circuit. The Sixth Circuit heard oral
arguments on January 15, 2009 and issued its opinion on March 23, 2009. The opinion of the Sixth
Circuit affirmed the November 8, 2006
District Courts ruling. On April 6, 2009, Mr. Moran filed a Petition for Rehearing and
Suggestion for Rehearing En Banc (Petition for
Rehearing) and Mr. Moran also filed a Notice of Continuation of Stay Pending Consideration by the
Sixth Circuit of the Petition for Rehearing.
On July 15, 2009, the District Court issued an order lifting the Stay Order previously imposed.
On July 21, 2009, the Sixth Circuit issued an
order denying the Petition for Rehearing.
On September 18, 2009, the Defendants filed Motions to Dismiss the First Amended Complaint. A
hearing on the Motions to Dismiss was held
in the District Court on April 16, 2010. The District Court has not yet issued its decision.
On March 28, 2007 the ACC filed a motion with the Court requesting an order to approve the
appointment of a Chapter 11 trustee (the Chapter
11 Trustee Motion). On April 11, 2007, April 12, 2007 and May 1, 2007 certain of the Defendants
filed motions to convert the case to Chapter
7 (the Chapter 7 Trustee Motion). On June 28, 2007, the ACC filed a motion to withdraw the
Chapter 11 Trustee Motion; the Court granted
the ACCs withdrawal motion on August 1, 2007. An evidentiary hearing on the Chapter 7 Trustee
Motion was held in August 2007. The Court
has not yet issued its order.
The LTV Corporation
Integrated Steel Business Debtors Cash Account Balances - June 2010
Integrated Steel Business Debtors Cash Account Balances - June 2010
JP Morgan Chase |
$ | 8,216 | ||
Outstanding Checks |
(9 | ) | ||
Total |
$ | 8,207 | ||