WCI Steel noteholders downgrade estimate for lawsuit recovery

By Jeff Pines

Washington, June 17 - WCI Steel Corp.'s secured noteholders downgraded the amount of money they think they might recover in legal action to $8 million from a previous figure of $18 million. In their original plan, they estimated the recovery to be $23 million.

The 10% secured noteholders made the change in an amended disclosure statement filed with the U.S. Bankruptcy Court for the Northern District of Ohio.

The noteholders filed their own plan after the company waived its exclusivity - although WCI Steel has filed its own plan. They believe the company's reorganization plan undervalues the company greatly. Their plan calls for them to get $100 million in new 10-year 9% notes, 40% of the equity of the reorganized company, the right to buy 48% of WCI's equity and a pro rata share of the $8 million if they are successful.

Warren, Ohio-based WCI filed for bankruptcy on Sept. 16, 2003. WCI's Chapter 11 case number is 03-44662.

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