LTV bankruptcy

Press, 21 July 1986, Page 28

LTV bankruptcy

NZPA-Reuter Dallas LTV Corporation, the second largest American steel company, has filed for bankruptcy, citing growing problems in its steel and energy businesses and stiff competition from imports. It plans to restructure with continuing trading.

LTV has lost more than JUSI.S billion (SNZ2.B billion) since 1982 but the bankruptcy filing came as a surprise. Only a few weeks ago the company said it had no intention of taking such a step.

The, U.S. steel industry has been under pressure for a number of years, saddled with ageing plants and equipment and facing strong competition from foreign steelmakers.

LTV said: “Today’s action will allow the company to continue its steel, aerospace/ defence and energy products operations while taking the steps necessary to restructure its businesses and return to profitability.” It said the reorganisation would allow it to further reduce costs and restructure its debt.

“Most important, the company will be able to take

these steps without the cashflow problems it now faces,” it said. "We are fully confident that we will emerge from Chapter 11 (bankruptcy) as a strong, viable company.”

Earlier this month the company pumped SUSU2 million (JNZ209.44 million) into its struggling steel unit At the time, an LTV spokesman said "no consideration” was being given to declaring bankruptcy.