LTV in Agreement To Sell VP Buildings

Apr 24, 2001, 01:00 ET from LTV Corporation

    CLEVELAND, April 24 /PRNewswire Interactive News Release/ -- The LTV
 Corporation (OTC Bulletin Board:   LTVCQ) today announced that it had signed a
 non-binding letter of intent to sell all of the assets of its VP Buildings,
 Inc. and certain related subsidiaries to Wellspring Capital Partners II, L.P.
 VP Buildings, with headquarters in Memphis, Tennessee, is the nation's second
 largest manufacturer of pre-engineered metal buildings for low-rise commercial
 and industrial applications.  VP Buildings operates 11 facilities in North
 America and has an interest in three joint venture plants in Latin America.
 Revenues for 2000 were approximately $400 million.  The company employs about
 2,300 people in the United States.
     The total value of the sale to LTV is approximately $175 million,
 consisting of $150 million in cash and notes and the assumption by the
 purchaser of liabilities estimated at approximately $25 million.
     "The sale of VP Buildings will provide LTV with additional financial
 resources with which to restructure the integrated steel unit, meet financial
 commitments and maintain current operations," said John D. Turner, executive
 vice president and chief operating officer.  Mr. Turner said that VP Buildings
 had grown appreciably since being acquired by LTV in 1997 and that he expected
 the company to continue its pattern of success under the ownership of
 Wellspring Capital Partners.
     The LTV Corporation is currently operating under protection of chapter 11
 of the U.S. Bankruptcy Code.  Completion of the sale is subject to definitive
 documentation and will require the approval of the Bankruptcy Court.  The
 parties expect to complete the transaction during the third quarter.
     Wellspring Capital Partners II, L.P. is a private investment partnership
 focused on investing in companies where it can create substantial value by
 contributing management expertise, innovative operating and financial
 strategies and capital.  The partnership's capital is provided by investors
 who are among the largest and most respected public and private pension funds,
 corporations and financial institutions in the U.S. and Canada, as well as
 from the principals of Wellspring.
     The LTV Corporation is a manufacturing company with interests in steel and
 metal fabrication.  LTV's Integrated Steel segment is a leading producer of
 high-quality, value-added flat-rolled steel, and a major supplier to the
 transportation, appliance, electrical equipment and service center industries.
 LTV's Metal Fabrication segment consists of LTV Copperweld, the largest
 producer of tubular and bimetallic products in North America and VP Buildings,
 a leading producer of pre-engineered metal buildings for low-rise commercial
 applications.
     This press release includes forward-looking statements.  Our uses of the
 words "outlook", "anticipates," "believes," "estimate," "expect" and similar
 words are intended to identify these statements as forward looking.   These
 statements represent our current judgement on what the future holds.  While
 the Company believes them to be reasonable, a number of important factors
 could cause actual results to differ materially from those projected.  These
 factors include relatively small changes in market price or market demand;
 changes in domestic capacity; changes in raw material costs; increased
 operating costs; loss of business from major customers, especially for high
 value-added product; availability of post petition financing; negative market
 and credit impact from the Chapter 11 filing; unanticipated expenses;
 substantial changes in financial markets; labor unrest; unfair foreign
 competition; major equipment failure; unanticipated results in pending legal
 proceedings; difficulties in implementing information technology; and other
 factors.
 
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SOURCE LTV Corporation
    CLEVELAND, April 24 /PRNewswire Interactive News Release/ -- The LTV
 Corporation (OTC Bulletin Board:   LTVCQ) today announced that it had signed a
 non-binding letter of intent to sell all of the assets of its VP Buildings,
 Inc. and certain related subsidiaries to Wellspring Capital Partners II, L.P.
 VP Buildings, with headquarters in Memphis, Tennessee, is the nation's second
 largest manufacturer of pre-engineered metal buildings for low-rise commercial
 and industrial applications.  VP Buildings operates 11 facilities in North
 America and has an interest in three joint venture plants in Latin America.
 Revenues for 2000 were approximately $400 million.  The company employs about
 2,300 people in the United States.
     The total value of the sale to LTV is approximately $175 million,
 consisting of $150 million in cash and notes and the assumption by the
 purchaser of liabilities estimated at approximately $25 million.
     "The sale of VP Buildings will provide LTV with additional financial
 resources with which to restructure the integrated steel unit, meet financial
 commitments and maintain current operations," said John D. Turner, executive
 vice president and chief operating officer.  Mr. Turner said that VP Buildings
 had grown appreciably since being acquired by LTV in 1997 and that he expected
 the company to continue its pattern of success under the ownership of
 Wellspring Capital Partners.
     The LTV Corporation is currently operating under protection of chapter 11
 of the U.S. Bankruptcy Code.  Completion of the sale is subject to definitive
 documentation and will require the approval of the Bankruptcy Court.  The
 parties expect to complete the transaction during the third quarter.
     Wellspring Capital Partners II, L.P. is a private investment partnership
 focused on investing in companies where it can create substantial value by
 contributing management expertise, innovative operating and financial
 strategies and capital.  The partnership's capital is provided by investors
 who are among the largest and most respected public and private pension funds,
 corporations and financial institutions in the U.S. and Canada, as well as
 from the principals of Wellspring.
     The LTV Corporation is a manufacturing company with interests in steel and
 metal fabrication.  LTV's Integrated Steel segment is a leading producer of
 high-quality, value-added flat-rolled steel, and a major supplier to the
 transportation, appliance, electrical equipment and service center industries.
 LTV's Metal Fabrication segment consists of LTV Copperweld, the largest
 producer of tubular and bimetallic products in North America and VP Buildings,
 a leading producer of pre-engineered metal buildings for low-rise commercial
 applications.
     This press release includes forward-looking statements.  Our uses of the
 words "outlook", "anticipates," "believes," "estimate," "expect" and similar
 words are intended to identify these statements as forward looking.   These
 statements represent our current judgement on what the future holds.  While
 the Company believes them to be reasonable, a number of important factors
 could cause actual results to differ materially from those projected.  These
 factors include relatively small changes in market price or market demand;
 changes in domestic capacity; changes in raw material costs; increased
 operating costs; loss of business from major customers, especially for high
 value-added product; availability of post petition financing; negative market
 and credit impact from the Chapter 11 filing; unanticipated expenses;
 substantial changes in financial markets; labor unrest; unfair foreign
 competition; major equipment failure; unanticipated results in pending legal
 proceedings; difficulties in implementing information technology; and other
 factors.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X65158708
 
 SOURCE  LTV Corporation

RELATED LINKS

http://www.ltvsteel.com