================================================================= BETHLEHEM BANKRUPTCY NEWS Issue Number 1 ----------------------------------------------------------------- Copyright 2001 (ISSN XXXX-XXXX) October 16, 2001 ----------------------------------------------------------------- Bankruptcy Creditors' Service, Inc. 609-392-0900 FAX 609-392-0040 ----------------------------------------------------------------- BETHLEHEM BANKRUPTCY NEWS is published by Bankruptcy Creditors' Service, Inc., 24 Perdicaris Place, Trenton, New Jersey 08618, on an ad hoc basis (generally every 10 to 20 days) as significant activity occurs in the Debtors' cases. Each issue is prepared by Peter A. Chapman, Editor. Subscription rate is US$45 per issue. Any re-mailing of BETHLEHEM BANKRUPTCY NEWS is prohibited. ================================================================= IN THIS ISSUE ------------- [00000] HOW TO SUBSCRIBE TO BETHLEHEM BANKRUPTCY NEWS [00001] BACKGROUND & DESCRIPTION OF BETHLEHEM STEEL [00002] BETHLEHEM'S SEPTEMBER 30, 2001 CONSOLIDATED BALANCE SHEET [00003] COMPANY'S PRESS RELEASE CONCERNING CHAPTER 11 PROCEEDINGS [00004] BETHLEHEM STEEL CHAPTER 11 DATABASE [00005] LIST OF BETHLEHEM'S 30 LARGEST UNSECURED CREDITORS [00006] BETHLEHEM STEEL ANNOUNCES THIRD QUARTER 2001 RESULTS [00007] ESTIMATED NEXT-30-DAY CASH RECEIPTS & DISBURSEMENTS KEY DATE CALENDAR ----------------- 10/15/01 Voluntary Petition Date 10/30/01 Deadline for filing Schedules of Assets and Liabilities 10/30/01 Deadline for filing Statement of Financial Affairs 10/30/01 Deadline for filing Lists of Leases and Contracts 11/04/01 Deadline to provide Utilities with adequate assurance 12/14/01 Deadline to make decisions about lease dispositions 01/13/02 Deadline to remove actions pursuant to F.R.B.P. 9027 02/12/02 Expiration of Debtors' Exclusive Plan Proposal Period 04/13/02 Expiration of Debtors' Exclusive Solicitation Period 10/14/03 Deadline for Debtors' Commencement of Avoidance Actions Organizational Meeting with UST to form Committees Bar Date for filing Proofs of Claim First Meeting of Creditors pursuant to 11 USC Sec. 341 ----------------------------------------------------------------- [00000] HOW TO SUBSCRIBE TO BETHLEHEM BANKRUPTCY NEWS ----------------------------------------------------------------- BETHLEHEM BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtors' cases. The subscription rate is $45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. To continue receiving BETHLEHEM BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to: Bankruptcy Creditors' Service, Inc. 24 Perdicaris Place Trenton, NJ 08618 Telephone (609) 392-0900 Fax (609) 392-0040 E-mail: peter@bankrupt.com We have published similar newsletters tracking billion-dollar insolvency proceedings since 1990. 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Name: ---------------------------------------------- Firm: ---------------------------------------------- Address: ---------------------------------------------- ---------------------------------------------- Phone: ---------------------------------------------- Fax: ---------------------------------------------- E-Mail: ---------------------------------------------- BETHLEHEM BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtors' cases. The subscription rate is $45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. ----------------------------------------------------------------- [00001] BACKGROUND & DESCRIPTION OF BETHLEHEM STEEL ----------------------------------------------------------------- BETHLEHEM STEEL CORPORATION 1170 Eighth Avenue Bethlehem, Pennsylvania 18016-7699 Telephone (610) 694-2424 http://www.bethlehemsteel.com Bethlehem Steel Corporation (NYSE: BS) is the second-largest integrated steelmaker in the United States, manufacturing and selling a wide variety of steel mill products including hot- rolled, cold-rolled and coated sheets, tin mill products, carbon and alloy plates, rail, specialty blooms, carbon and alloy bars and large diameter pipe. In the first nine months of 2001, Bethlehem shipped 6.1 million tons of steel products and generated $2.6 billion in revenues. Its principal markets include automotive, construction, machinery and equipment, appliance, containers, service centers, rail and pipe. Bethlehem Steel's principal operations are comprised of three divisions: * Burns Harbor -- located 40 miles southeast of Chicago on the shores of Lake Michigan in Burns Harbor, Indiana, the Burns Harbor Division operates facilities in Indiana on Lake Michigan and in Lackawanna, New York on Lake Erie; * Sparrows Point -- located on the Chesapeake Bay near Baltimore, Maryland, the Sparrows Point Division operates a facility on the Chesapeake Bay, near Baltimore, Maryland and two facilities in Coatesville and Conshohocken, Pennsylvania; and * Pennsylvania Steel Technologies -- located in Steelton, Pennsylvania, just south of Harrisburg, the Pennsylvania Steel Technologies Division, the nation's largest rail producer and a manufacturer of specialty blooms, carbon and alloy bars and large diameter pipe, operates a facility in Steelton, Pennsylvania. Sales of products produced at the Burns Harbor and Sparrows Point Divisions, primarily steel sheet and plate, generate 95% of Bethlehem Steel Corporation's revenues. In addition to Bethlehem Steel Corporation's steel production and manufacturing facilities, the Company: (i) owns former industrial sites and redevelop, market and sell such sites as commercial, industrial, light industrial and mixed-use properties, (ii) through subsidiaries, operates eight shortline and switching railroads, and trucking and intermodal facilities and provide logistics services, (iii) has residual interests in formerly owned plants and facilities, (iv) participates in a number of joint ventures, partnerships and limited liability companies that own and operate iron ore mines and reserves, sheet steel coating and processing facilities, metal product fabrication facilities, heavy machinery and rolling mill grinding facilities, and clinics for providing healthcare services to employees and retirees, (v) owns shutdown coal mines and coal reserves in Pennsylvania, West Virginia and Kentucky and (vi) operates Great Lakes ore carrying vessels. Founded in 1904 by Charles M. Schwab, Bethlehem Steel Corporation traces its origins to the Saucona Iron Company, which was established in 1857 in Bethlehem, Pennsylvania. Later renamed the Bethlehem Iron Company, this single plant became the nucleus around which the modern Bethlehem Steel Corporation was formed. For 97 years, Bethlehem Steel has provided the steel to build, transport and defend America. Its products have produced enduring structures such as the Golden Gate Bridge, the U.S. Supreme Court Building, Chicago's Merchandise Mart and much of the New York City skyline. A major producer of armaments for the military, Bethlehem Steel's workforce in World War II numbered about 300,000. In addition to its steel plants, Bethlehem had shipyards on both U.S. coasts that delivered a ship a day (1,121 in total) to the Allied war effort. The Company's support of the military continues today as it was the sole supplier of armor plate steel for the repair of the USS Cole. Bethlehem Steel currently employs about 13,000 -- about 80% of whom are covered by one master collective bargaining agreement and a number of plant specific agreements and settlement agreements with the United Steel Workers of America. The Debtors sponsor several tax-qualified noncontributory defined benefit pension plans that provide benefits for substantially all of the employees. The Debtors fund annually the minimum amount required by the Employee Retirement Income Security Act of 1974, as amended, plus additional amounts as appropriate based on their liquidity and business outlook. The Debtors also provide other post-employment benefits for healthcare and life insurance to most retirees and their dependents, and to surviving spouses of many deceased employees and retirees -- about 130,000 individuals. In 2000, after using trust funds of about $64,000,000, Bethlehem paid directly $130,000,000 in OPEB benefits. The projection for 2001, after using trust funds of about $28,000,000, is that Bethlehem and its consolidated subsidiaries will directly pay out about $175,000,000 in OPEB benefits. Bethlehem estimates that its direct 2002 cash requirements for OPEB benefits will be in the range of $205,000,000 to $215,000,000. Using September 30, 2001 market values and interest rates, Bethlehem estimates that the unfunded OPEB approximate $3,000,000,000 and pension obligations total $1,850,000,000. ----------------------------------------------------------------- [00002] BETHLEHEM'S SEPTEMBER 30, 2001 CONSOLIDATED BALANCE SHEET ----------------------------------------------------------------- Bethlehem Steel Corporation CONSOLIDATED BALANCE SHEETS At September 30, 2001 ASSETS Current Assets: Cash and cash equivalents $50,400,000 Receivables, less allowances 164,200,000 Inventories: Raw materials 234,500,000 Finished and semifinished 516,400,000 -------------- Total Inventories 750,900,000 Other current assets 23,100,000 -------------- Total Current Assets 988,600,000 Investments and Miscellaneous Assets 134,200,000 Property, Plant and Equipment, less accumulated depreciation of $4,449,000,000 2,755,700,000 Goodwill, less accumulated amortization of $40,000,000 320,000,000 -------------- Total Assets $4,198,500,000 ============== LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable $278,600,000 Accrued employment costs 99,200,000 Other postretirement benefits 205,000,000 Accrued taxes 70,300,000 Debt and capital lease obligations 388,300,000 Other current liabilities 102,000,000 -------------- Total Current Liabilities 1,143,400,000 Long-term Debt and Capital Lease Obligations 578,700,000 Deferred Gain 109,000,000 Pension Liability 539,500,000 Other Postretirement Benefits 1,835,500,000 Other Long-term Liabilities 295,000,000 Stockholders' Equity (Deficit): Preferred Stock 11,600,000 Preference Stock 2,000,000 Common Stock 135,100,000 Common Stock held in treasury at cost (65,800,000) Additional paid-in capital 1,908,100,000 Accumulated other comprehensive loss (1,700,000) Accumulated deficit (2,291,900,000) -------------- Total Stockholders' Equity (Deficit) (302,600,000) -------------- Total Liabilities and Stockholders' Deficit $4,198,500,000 ============== ----------------------------------------------------------------- [00003] COMPANY'S PRESS RELEASE CONCERNING CHAPTER 11 PROCEEDINGS ----------------------------------------------------------------- Bethlehem Steel Files Voluntary Petition Under Chapter 11 Of United States Bankruptcy Code Company Receives $450 Million Loan Commitment to Meet Ongoing Operating Needs; Operations and Customer Service to Continue Without Interruption BETHLEHEM, Pennsylvania -- October 15, 2001 -- Bethlehem Steel Corporation (NYSE: BS), the second-largest integrated steel manufacturer in the nation, announced today that it has filed a voluntary petition under Chapter 11 of the Federal Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. Despite nearly $300 million in net cost reductions since the middle of 1998, the Company could not overcome the injury caused by record levels of unfairly traded steel imports and the slowing economy that have severely reduced prices, shipments and production. Since mid-1998, Bethlehem's revenues have been reduced over this same period by approximately $1.3 billion annually. The resulting operating losses of approximately $500 million and negative cash flow since the middle of 1998 have severely impaired the Company's financial condition. The entire domestic steel industry is suffering from the onslaught of record steel imports since 1998, resulting in over 20 prior bankruptcy filings. The events of September 11 have contributed to a further weakening in demand for consumer products that rely on steel, such as automobiles, appliances and new homes, and to a worsening outlook for our near-term performance. Bethlehem is seeking protection under Chapter 11 to provide the necessary time to stabilize the Company's finances and to develop and implement a strategic plan to return Bethlehem to sustained profitability. Key objectives of the plan will include improving the Company's capital structure, working with the United Steelworkers of America (USWA) to improve productivity and further reduce costs, particularly employment and healthcare costs, and finding a solution to its approximate $3-billion retiree healthcare obligation. While in Chapter 11, Bethlehem will continue to work with the federal government to remedy unfair trade practices, reduce excess global steel capacity and foster domestic steel industry consolidation. The Company has secured a loan commitment for $450-million Debtor-in-Possession (DIP) financing from GE Capital, subject to Court approval. This financing package, combined with other actions, should provide sufficient liquidity to meet ongoing operating needs. During these restructuring proceedings, Bethlehem will continue steel production without interruption with the same level of commitment to superior quality and service to our valued customer base. The Company's key supplier relationships remain intact and the continued support of the supply base is essential to the development of a successful Plan of Reorganization. "This step is imperative to preserve not only the Company's future, but also the future of our workforce. Working together with the USWA and government, management intends to take full advantage of the opportunities afforded by the Chapter 11 process to return Bethlehem to sustained profitability," said Robert S. Miller, Jr., chairman and chief executive officer of Bethlehem Steel Corporation. "Our employees have demonstrated their support to get us through these difficult times. We appreciate their continued loyalty and contributions." Mr. Miller continued, "Bethlehem has made considerable progress in reducing its costs and meeting customers' increasing demand for high quality products. However, we need to do more. Chapter 11 does not solve our problems. It provides us a process and framework within which we can address and explore the significant issues facing the Company. The cooperation of the USWA is essential to increase productivity by establishing more flexible work practices and to implement new initiatives to significantly reduce our healthcare obligations. Discussions with the USWA have already begun. Aggressive company-wide cost reduction initiatives are underway and we are also developing plans to further reduce our total workforce by January 2002. Reducing our costs and strengthening our balance sheet will allow Bethlehem to make the necessary investments in our facilities to remain a leader in the steel industry." Beyond these self-help measures, Bethlehem will seek government assistance through strict enforcement of our trade laws including a successful conclusion of the Section 201 trade case now before the International Trade Commission. In addition, Bethlehem will explore participation in the necessary consolidation of the highly fragmented domestic steel industry, and will look for solutions to the retiree healthcare issue. Government assistance and support will be required if we are to reestablish a vibrant and healthy domestic steel industry. Mr. Miller concluded, "There is much hard work ahead to restore the Company to a position of financial viability. One thing is clear, our national security and our economy depend upon a sound and productive American steel industry, and Bethlehem is determined to be an integral part of the future of our industry." ----------------------------------------------------------------- [00004] BETHLEHEM STEEL CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor entities filing separate chapter 11 petitions: Case No. Debtor Entity -------- ------------- 01-15288 Bethlehem Steel Corporation 01-15289 Alliance Coatings Company, LLC 01-15290 BethEnergy Mines, Inc. 01-15291 Bethlehem Cold Rolled Corporation 01-15292 Bethlehem Development Corporation 01-15293 Bethlehem Rail Corporation 01-15294 Bethlehem Steel de Mexico, S.A. de C.V. 01-15295 Bethlehem Steel Export Company of Canada, Limted 01-15296 Bethlehem Steel Export Corporation 01-15297 BethPlan Corporation 01-15298 Chicago Cold Rolling, L.L.C. 01-15299 Eagle Nest Inc. 01-15300 Encoat-North Arlington, Inc. 01-15301 Energy Coatings Company 01-15302 Greenwood Mining Corporation 01-15308 HPM Corporation 01-15309 Kenacre Land Corporation 01-15310 LI Service Company 01-15311 Marmoraton Mining Company, Ltd 01-15312 Mississippi Coatings Limited Corporation 01-15313 Mississippi Coatings Line Corporation 01-15314 Ohio Steel Service Company, LLC 01-15315 Primeacre Land Corporation Bethlehem affiliates Bethlehem Steel Credit Affiliate One, Inc., Bethlehem Steel Credit Affiliate Two, Inc., Bethelehem Steel Funding, LLC, Cambria and Indiana Railroad Co., Conemaugh & Black Lick Railroad Co., Patapsco & Back Rivers Railroad Co., Brandywine Valley Railroad Co., Upper Merion & Plymouth Railroad Co., Keystone Railroad Inc., Lake Michigan & Indiana Railroad Co. LLC, Bethtran, Inc., Carrier Express, Inc., Beth Interm odal Inc., RailQuest LLC, Steelton & Highspire Ralroad Co., Bethlehem Hibbing Corp., Ontario Iron Co., Hibbing Development Co., Hibbing Taconite Co., Hibbing Land Corp., IPV, Inc., Bethlehem Blank Welding, Inc., EGL Steel Co., Inc., Bethlehem Steel International Corp., Bethlehem Roofing Co., LLC, Interocean Shipping Co., Bethlehem Energy Services, Inc., Bethlehem Industries Corp., Pennsylvania Steel Technologies, Inc., Bethlehem Steel Foundation, and Twincast Property Leasing, Inc., did NOT file chapter 11 petitions. Petition Date: October 15, 2001 U.S. Bankruptcy Court: United States Bankruptcy Court Southern District of New York Alexander Hamilton Custom House One Bowling Green, 5th Floor New York, New York 10004-1408 Telephone (212) 668-2870 Bankruptcy Judge: The Honorable Burton R. Lifland Debtors' Counsel: Harvey R. Miller, Esq. Jeffrey L. Tanenbaum, Esq. George A. Davis, Esq. WEIL, GOTSHAL & MANGES LLP 767 Fifth Avenue New York, New York 10153 Telephone (212) 310-8000 Debtors' Financial Advisor: Michael A. Kramer Managing Director GREENHILL & CO., LLC 300 Park Avenue New York, NY 10022 (212) 389-1500 Debtors' Special Corporate Counsel: D. Collier Kirkham, Esq. CRAVATH, SWAINE & MOORE Worldwide Plaza 825 Eighth Avenue New York, NY 10019 Telephone (212) 474-1000 U.S. Trustee: Carolyn S. Schwartz Office of United States Trustee 33 Whitehall Street, 21st Floor New York, NY 10004 Telephone (212) 510-0500 ----------------------------------------------------------------- [00005] LIST OF BETHLEHEM'S 30 LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Entity Nature Of Claim Claim Amount ------ --------------- ------------ U.S. Bank Trust National 7-5/8% Notes Loan $150,000,000 Darlene Garsteig Association, Trustee 180 East 5th Street, 2nd Floor St. Paul, MN 55101 651-244-5000 The Bank of New York, 10-3/8% Senior Notes $105,000,000 Trustee Loan Iliana A. Arciprete 101 Barclay Street, 21W New York, NY 10286 212-495-1784 U.S. Bank Trust National 6-1/2% Notes Loan $75,000,000 Association, Trustee Darlene Garsteig 180 East 5th Street, 2nd Floor St. Paul, MN 55101 651-244-5000 Chase Manhattan Bank 8.45% Debenture Loan $74,000,000 Delaware, Trustee John Cashin 1201 Market Street Wilmington, DE 19801 302-552-6279 Baltimore County, 7.50% Bonds $33,000,000 Maryland c/o Baltimore County Robert L. Hannon Department of Economic Development 400 Washington Avenue Courthouse Mezzanine Towson, MD 21204 410-887-8000 Town of Burns Harbor Bonds $26,200,000 Esther V. Nickell Town Hall 1240 Boo Road Burns Harbor, IN 46304 219-787-9413 Cambria County Industrial Bonds $25,500,000 Warren M. Myers Development Authority P.O. Box 94 Ebensburg, PA 15931 814-472-7420 Northampton County Bonds $23,400,000 Industrial Development Authority John W. Kingsley 669 Washington Street Easton, PA 18042 610-559-3200 Baltimore County 7.55% Bonds $20,800,000 Maryland c/o Baltimore County Department of Economic Development 400 Washington Avenue Courthouse Mezzanine Towson, MD 21204 Robert L. Hannon 410-887-8000 DTE Burns Harbor LLC Trade Debt $9,909,544 425 S Main Street Suite 201 PO Box 8614 Ann Arbor, MI 48107 Barry Markowitz 734-913-2081 United Steelworkers Union $9,000,000 of America Leo W. Gerard International President Five Gateway Center Pittsburgh, PA 15222 412-562-2400 Mitsubishi International Trade Debt $4,481,400 Corporation Yutaka Kashiwagi Bank of America 231 South LaSalle Street Chicago, IL 60697 212-605-3433 EDS Corporation Trade Debt $4,182,681 P.O. Box 281935 Atlanta, GA 30384-1935 Michael Hughes 610-694-2637 Eighth & Eaton Avenues Bethlehem, PA 18016 American Iron & Steel Trade Debt $3,315,000 Institute Andrew G. Sharkey, III President & CEO Suite 1300 1101 17th Street NW Washington, D.C. 20036 202-452-7100 Norfolk Southern Trade Debt $2,971,627 Railway Co David R. Good P.O. Box 75623 Charlotte, NC 28275 757-629-2610 Vesuvius USA Trade Debt $2,879,493 James Engel 5645 Collections Center Drive Chicago, IL 60693 217-351-5002 Walbridge Coatings Trade Debt $2,818,424 Ed Williams P.O. Box 98150 Chicago, IL 60693 419-661-5902 Baltimore Gas & Trade Debt $2,274,845 Electric Co Charles Lidard P.O. Box 1475 Baltimore, MD 21203 410-265-4039 Consolidation Coal Co Trade Debt $2,167,145 Vince Czajkoski P.O. Box 36003M Pittsburgh, PA 15251-6003 412-831-4696 DTE Sparrows Point LLC Trade Debt $2,075,406 Jim Brown Bank One Detroit 425 S Main Street, Suite 201 PO Box 8614 Ann Arbor, MI 48107 410-477-0600 Philip Metals Inc. Trade Debt $2,010,216 Fred Smith Dept L-427P Pittsburgh, PA 15264 216-752-4000 Praxair Inc. Trade Debt $1,997,906 Gary Scheidt P.O. Box 281901 Atlanta, GA 30384-1901 219-391-5207 CSX Transportation Trade Debt $1,378,652 John W. Snow P.O. Box 640839 Pittsburgh, PA 15264-0839 804-782-1434 Metal Building Trade Debt $1,278,343 Components LP (for Metal Coaters of Georgia) Randy Froehlich P.O. Box 840326 Dallas, TX 75284-0326 678-797-9822 Iron Ore Company of Canada Trade Debt $1,226,227 Ernest Dempsey 1010 Sherbrooke St W Suite 2500 Montreal, Quebec H3A 2R7 Canada 514-285-8402 Tippins Incorporated Settlement $1,200,000 435 Butler Street Pittsburgh, PA 15223 John E. Thomas 412-781-7600 Chairman, President & CEO Indometal (London) Limited Trade Debt $1,098,726 326-A City Road Angel Gate, London EC1 Yogie Dadang 9-011-44-207-837-5344 Pennsylvania Lime Inc. Trade Debt $1,083,024 P.O. Box 91832 Chicago, IL 60693-1832 Anthony Mantione 717-867-5800 Air Products & Chemicals Trade Debt $1,052,157 Inc. Brian Sullivan P.O. Box 360545M Pittsburgh, PA 15251-0545 610-481-8641 Superior Natural Gas Corp Trade Debt $985,350 Mark Snapp Southwest Bank of Texas 1021 Main Street, Suite 2100 Houston, TX 77002-6502 713-353-5360 ----------------------------------------------------------------- [00006] BETHLEHEM STEEL ANNOUNCES THIRD QUARTER 2001 RESULTS ----------------------------------------------------------------- BETHLEHEM, Pennsylvania -- October 15 -- Bethlehem Steel Corporation (NYSE: BS) today reported a net loss for the third quarter of 2001 of $152 million or $1.25 per diluted common share. Bethlehem's third quarter results include a $40 million charge for the closure of our Lackawanna, New York coke facility, offset by a $22 million gain from the sale of our equity interest in MBR, a Brazilian iron ore property. Excluding these unusual items Bethlehem's third quarter net loss was $134 million, or $1.11 per diluted common share. This compares with a net loss for the third quarter of 2000 of $35 million or $.34 per diluted common share. Sales for the third quarter of 2001 were about $825 million compared to $989 million for the same period last year. Prices on a constant mix basis declined about $40 per ton, shipments declined about 117,000 tons and our product mix was worse. Excluding unusual items mentioned above, our loss from operations was $109 million for the third quarter of 2001 compared to $14 million for the same period last year. This decline was caused principally by lower realized prices that on a constant mix basis were down by about 9%. Our third quarter 2001 loss from operations of $109 million was $14 million more than the second quarter of 2001. This larger loss was a result of a 9% decline in shipments and a further decline in realized prices. "The U.S. economy has slowed considerably during the past year and the events of September 11 have contributed to a further weakening in demand for consumer products that rely on steel such as automobiles, appliances and residential construction," said Robert S. Miller, Jr., Chairman and Chief Executive Officer of Bethlehem Steel Corporation. "While we believe that the recent interest rate cuts by the Federal Reserve and the federal income tax cut will help to support consumer spending, we currently believe that the economy and steel market conditions will remain weak through about the middle of next year." Mr. Miller said, "We continue to be concerned about the high level of excess world steel capacity and the threat it poses for continued high levels of unfairly traded steel imports. We remain encouraged by the investigation by the International Trade Commission under Section 201 of the Trade Act of 1974 concerning the injury caused by steel imports on the U.S. steel industry and the negotiations between governments to eliminate inefficient excess capacity in the steel industry worldwide and to eliminate underlying market- distorting subsidies." ----------------------------------------------------------------- [00007] ESTIMATED NEXT-30-DAY CASH RECEIPTS & DISBURSEMENTS ----------------------------------------------------------------- In first-day papers delivered to Judge Lifland, Lonnie A. Arnett, Bethlehem's Vice President, Controller and Chief Accounting Officer, outlines the Debtors' estimated cash receipts and disbursements through mid-November 2001: Bethlehem Steel Corporation Estimated Cash Receipts and Disbursements For the 30-Day Period Following the Petition Date Estimated Cash Receipts: From Sales $290,000,000 From Asset Dispositions 0 Other 0 ------------ Total Receipts $290,000,000 Estimated Cash Disbursements: Net Payroll $55,000,000 Payroll Taxes 13,000,000 Active and Retiree Benefits 38,300,000 Raw Materials 77,000,000 Transportation 23,000,000 Utilities 24,000,000 Outside Processing 17,000,000 Maintenance, Services & Other 14,000,000 Financings 8,800,000 Professional Fees 1,000,000 ------------ Total Disbursements $275,000,000 ------------ ESTIMATED CASH GAIN $15,000,000 ============ *** End of Issue No. 1 ***