-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Qln74utKQbV02lJahOxRto6ANnCRdFnf427LJ9Reh7CNGhnLhpvSxk4/PLF0rZ91 9vhQIlW8iqOojXovTuPtkA== 0000909518-02-000483.txt : 20020620 0000909518-02-000483.hdr.sgml : 20020620 20020620155743 ACCESSION NUMBER: 0000909518-02-000483 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020620 ITEM INFORMATION: FILED AS OF DATE: 20020620 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BETHLEHEM STEEL CORP /DE/ CENTRAL INDEX KEY: 0000011860 STANDARD INDUSTRIAL CLASSIFICATION: STEEL WORKS, BLAST FURNACES ROLLING MILLS (COKE OVENS) [3312] IRS NUMBER: 240526133 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-01941 FILM NUMBER: 02683280 BUSINESS ADDRESS: STREET 1: 1170 EIGHTH AVE CITY: BETHLEHEM STATE: PA ZIP: 18016-7699 BUSINESS PHONE: 6106942424 MAIL ADDRESS: STREET 1: 1170 EIGHTH AVE CITY: BETHLEHEM STATE: PA ZIP: 18016-7699 8-K 1 a6-20beth8k.txt ================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ------------------ Date of report (Date of earliest event reported): June 20, 2002 BETHLEHEM STEEL CORPORATION (Exact Name of Registrant as Specified in Its Charter) Delaware (State or Other Jurisdiction of Incorporation) 1-1941 24-0526133 (Commission File Number) (I.R.S. Employer Identification No.) 1170 Eighth Avenue Bethlehem, Pennsylvania 18016-7699 (Address of Principal Executive Offices) (Zip Code) 610-694-2424 (Registrant's Telephone Number, Including Area Code) N/A (Former Name or Former Address, if Changed Since Last Report) ================================================================================ Item 9. Regulation FD Disclosure. As previously disclosed, on October 15, 2001, Bethlehem Steel Corporation (the "Company") and twenty two of its wholly-owned subsidiaries (each, a "Debtor," and collectively, "Debtors") filed voluntary petitions under chapter 11 of title 11, United States Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the Southern District of New York (the "Court") (Case Nos. 01-15288 (BRL) through 01-15302 (BRL) and 01-15308 (BRL) through 01-15315 (BRL)) (collectively, the "Bankruptcy Cases"). The Debtors remain in possession of their assets and properties, and continue to operate their businesses and manage their properties as debtors-in-possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code. On June 20, 2002, the Debtors filed with the Court their required consolidated Monthly Operating Statement for the month of May 2002 (the "Monthly Operating Statement") in a form prescribed by the office of the United States Trustee of the Department of Justice for the Southern District of New York. Exhibit 99.1 to this Current Report on Form 8-K contains the text of the Monthly Operating Statement required to be filed with the Court. This Current Report (including the Exhibits hereto) will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD. The Company's informational filings with the Court, including the Monthly Operating Statement, are available to the public at the office of the Clerk of the Bankruptcy Court, Alexander Hamilton Custom House, One Bowling Green, New York, New York 10004-1408. The Monthly Operating Statement may be available electronically, for a fee, through the Court's Internet world wide web site, whose address is www.nysb.uscourts.gov (Case Nos. 01-15288 (BRL) through 01-15302 (BRL) and 01-15308 (BRL) through 01-15315 (BRL)). The Company cautions investors and potential investors not to place undue reliance upon the information contained in the Monthly Operating Statement, and it was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of the Company or other Debtor, or any other affiliate of the Company. The Monthly Operating Statement was not audited and is in a format prescribed by the applicable bankruptcy laws. However, in the opinion of the Company's management, the information reflects all adjustments necessary for a fair presentation of the results for the period presented in accordance with generally accepted accounting principles for interim financial statements. The Monthly Operating Statement should be read together with the audited consolidated financial statements in the Company's reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended (the "Exchange Act"). There can be no assurance that, from the perspective of an investor or potential investor in the Company's securities, the Monthly Operating Statement is complete. The Monthly Operating Statement also contains information for periods which are shorter or otherwise different from those required in the Company's reports pursuant to the Exchange Act. 2 Certain statements in this report are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated in such statements due to a number of factors, including changes arising from our chapter 11 filing. Due to material uncertainties, it is not possible to predict the length of time we will operate under chapter 11 protection, the outcome of the proceedings in general, whether we will continue to operate under our current organizational structure, whether there will be a major steel industry consolidation effort, the effect of the chapter 11 cases on Bethlehem's businesses, including customer and supplier reactions and the interests of various creditors and security holders. Additional factors that may affect our business and financial results are changes in customer spending patterns, supplier choices and demand for steel products; the effect of planned and unplanned outages on our operations; the potential impact of strikes or work stoppages at facilities of our customers and suppliers; the sensitivity of our results to relatively small changes in the prices we obtain for our products; intense competition due to excess global steel capacity, low-cost electric furnace facilities, imports (especially unfairly-traded imports) and substitute materials; the consolidation of many of our customers and suppliers; the high capital requirements associated with integrated steel facilities; the significant costs associated with environmental controls and remediation expenditures and the uncertainty of future environmental control requirements; availability, prices and terms associated with raw materials, supplies, utilities and other services and items required by Bethlehem's operations; employment matters, including costs and uncertainties associated with our collective bargaining agreements, and employee postretirement obligations; the effect of possible future closure or exit of businesses; our highly leveraged capital structure and our ability to obtain new capital at reasonable costs and terms; financial difficulties encountered by joint venture partners; and the effect of existing and possible future lawsuits against us. The forward-looking statements included in this document are based on information available to us as of the date of this report, and we assume no obligation to update any of these statements. 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: June 20, 2002 BETHLEHEM STEEL CORPORATION By: /s/ L. A. Arnett ---------------------------------------- L. A. Arnett Vice President and Controller 4 EXHIBIT INDEX Exhibit No. Description ----------- ----------- 99.1 Monthly Operating Statement filed with United States Bankruptcy Court - Southern District of New York. 5 EX-99.1 3 a6-20ex99_1.txt UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK Chapter 11 In re: Bethlehem Steel Corporation, et al., Case No. 01-15288 (BRL) Debtors through 01-15302, 01-15308 through 01-15315 (BRL) MONTHLY OPERATING STATEMENT FOR THE PERIOD MAY 1 TO MAY 31, 2002 DEBTORS' ADDRESS: Bethlehem Steel Corporation 1170 Eighth Avenue Bethlehem, PA 18016 DISBURSEMENTS: May 1 to May 31, 2002 (millions): $343.5 (see attached schedule for disbursements by Debtor) DEBTORS' ATTORNEY: Weil, Gotshal & Manges LLP 767 Fifth Avenue New York, NY 10153 Harvey R. Miller (HM 6078) Jeffrey L. Tanenbaum (JT 9797) George A. Davis (GD 2761) NET LOSS: May 1 to May 31, 2002 (millions): $37.4 REPORT PREPARER: Bethlehem Steel Corporation THIS OPERATING STATEMENT MUST BE SIGNED BY A REPRESENTATIVE OF THE DEBTOR The undersigned, having reviewed the attached report and being familiar with the Debtors' financial affairs, verifies under penalty of perjury, that the information contained herein is complete, accurate and truthful to the best of my knowledge. DATE: June 20, 2002 /s/ Lonnie A. Arnett ---------------------------- Lonnie A. Arnett Vice President, Controller and Chief Accounting Officer Bethlehem Steel Corporation Case No. 01-015288 (BRL) through 01-015302, 01-5308 through 01-15315 (BRL) CONSOLIDATED STATEMENTS OF OPERATIONS (dollars and shares in millions, except per share data)
May 31, 2002 ------------------------------- Five Month Ended Months Ended (unaudited) (unaudited) ------------- ------------- Net Sales $ 316.1 $ 1,414.5 ------------- ------------- Costs and Expenses Cost of sales 321.5 1,428.9 Depreciation 20.1 101.8 Selling, administration and general expense 6.6 40.8 ------------- ------------- Total Costs and Expenses 348.2 1,571.5 ------------- ------------- Loss from Operations (32.1) (157.0) Reorganization Items (Note 2) (1.2) (4.4) Financing Expense - net (Note 3) (4.1) (20.3) ------------- ------------- Loss before Income Taxes (37.4) (181.7) Benefit from Income Taxes (Note 4) - 10.3 ------------- ------------- Net Loss (37.4) (171.4) Dividend Requirements on Preferred and Preference Stock 3.3 16.5 ------------- ------------- Net Loss Applicable to Common Stock $ (40.7) $ (187.9) ============= ============= Net Loss per Common Share: Basic and Diluted $ (0.31) $ (1.44) Average Shares Outstanding: Basic and Diluted 131.0 130.9
The accompanying Notes are an integral part of the Consolidated Financial Statements. See Note 6 for Consolidated Statement of Operations for Debtors Only. Bethlehem Steel Corporation Case No. 01-15288 (BRL) through 01-015302, 01-15308 through 01-15315 (BRL) CONSOLIDATED BALANCE SHEET (dollars in millions)
May 31, 2002 (unaudited) ------------- ASSETS Current Assets: Cash and cash equivalents $ 43.0 Receivables, less allowances 394.6 Inventories: Raw materials 231.3 Finished and semifinished 491.9 ------------- Total Inventories 723.2 Other current assets 18.4 ------------- Total Current Assets 1,179.2 Investments and Miscellaneous Assets 121.0 Property, Plant and Equipment, less accumulated depreciation of $4,454.3 2,626.4 Intangible Pension Asset 225.0 ------------- Total Assets $ 4,151.6 ============= LIABILITIES AND STOCKHOLDERS' DEFICIT Current Liabilities: Accounts payable $ 167.7 Accrued employment costs 64.7 Secured debt and capital lease obligations - current 19.7 Other current liabilities 71.3 ------------- Total Current Liabilities 323.4 Secured Debt and Capital Lease Obligations 129.9 Debtor-in-Possession Financing 220.7 Debt Secured by Inventory 289.9 Deferred Gain and Other Long-term Liabilities 138.8 Liabilities Subject to Compromise (Note 5) 4,899.9 Stockholders' Deficit: Preferred Stock 11.3 Preference Stock 2.0 Common Stock 135.9 Common Stock held in treasury at cost (65.9) Additional paid-in capital 1,909.1 Accumulated other comprehensive loss (833.0) Accumulated deficit (3,010.4) ------------- Total Stockholders' Deficit (1,851.0) ------------- Total Liabilities and Stockholders' Deficit $ 4,151.6 =============
The accompanying Notes are an integral part of the Consolidated Financial Statements. See Note 6 for Consolidated Balance Sheet of the Debtors only. Bethlehem Steel Corporation Case No. 01-15288 (BRL) through 01-015302, 01-15308 through 01-15315 (BRL) CONSOLIDATED STATEMENTS OF CASH FLOWS (dollars in millions)
May 31, 2002 ------------------------------ Month Five Months Ended Ended (unaudited) (unaudited) ------------- ------------- Operating Activities: Net loss $ (37.4) $ (171.4) Adjustments for items not affecting cash from operating activities: Depreciation 20.1 101.8 Recognition of deferred gains (1.8) (9.2) Reorganization items 1.2 4.4 Other - net 2.1 8.4 Working capital (excluding financing and investing activities): Receivables (24.5) (43.9) Inventories 0.7 2.1 Accounts payable 18.1 (2.5) Other 10.6 8.4 Funding postretirement benefits: Pension funding less than expense 6.4 54.0 Retiree healthcare and life insurance benefit payments less than expense 6.1 24.0 ------------- ------------- Cash Provided By (Used For) Operating Activities Before Reorganization Items 1.6 (23.9) ------------- ------------- Reorganization items (1.2) (4.4) ------------- ------------- Cash Provided By (Used For) Operating Activities 0.4 (28.3) ------------- ------------- Investing Activities: Capital expenditures (22.4) (48.3) Cash proceeds from asset sales 0.9 17.6 ------------- ------------- Cash Used By Investing Activities (21.5) (30.7) ------------- ------------- Financing Activities: Borrowings - 30.5 Debt and capital lease payments (0.9) (19.7) Other payments (1.7) (12.8) ------------- ------------- Cash Used By Financing Activities (2.6) (2.0) ------------- ------------- Net Decrease in Cash and Cash Equivalents (23.7) (61.0) Cash and Cash Equivalents - Beginning of Period 66.7 104.0 ------------- ------------- Cash and Cash Equivalents - End of Period 43.0 43.0 Available Borrowing under Committed Bank Credit Arrangements 178.1 178.1 ------------- ------------- Total Liquidity at End of Month $ 221.1 $ 221.1 ============= ============= Supplemental Cash Payment Information: Interest and other financing costs, net of amount capitalized $ 0.9 $ 15.0 Income taxes paid - 0.4 Capital lease obligations incurred - 1.9
The accompanying Notes are an integral part of the Consolidated Financial Statements. Bethlehem Steel Corporation Case No. 01-15288 (BRL) through 01-015302, 01-15308 through 01-15315 (BRL) NOTES TO MAY 31, 2002 CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. These Consolidated Financial Statements are unaudited and should be read together with the audited financial statements in Bethlehem's Annual Report on Form 10-K for the year ended December 31, 2001 on file with the Securities and Exchange Commission. 2. Net costs resulting from reorganization of the businesses have been reported in the statement of operations separately as reorganization items. For the month and the five-months ended May 31, 2002, the following have been recorded (in millions): Five Month Ended Months Ended -------------------------------- Professional fees $ 1.2 $ 6.2 Other administrative fees - 0.5 Gains from termination of contracts - (2.0) Interest income - (0.3) ------------- ------------- Total $ 1.2 $ 4.4 ============= ============= 3. Interest at the stated contractual amount on unsecured debt that was not charged to earnings for the five-months ended May 31, 2002 was approximately $18 million. 4. The income tax benefit recorded for the five-months ended May 31, 2002 represents a $10 million tax refund as a result of the "Job Creation and Workers Assistance Act of 2002" that was enacted on March 8, 2002. The Act provides us the ability to carry back a portion of our 2001 Alternative Minimum Tax loss for a refund of taxes paid in prior years that was not previously available. We expect to receive the refund later this year. 5. Liabilities subject to compromise (in millions) at May 31, 2002 follows: Other postemployment benefits $ 2,030.6 Pension 1,678.0 Unsecured debt 526.7 Accounts payable 200.7 Accrued employment costs 231.3 Other accrued liabilities 155.5 Accrued taxes and interest 77.1 ------------- Total $ 4,899.9 ============= 6. Summarized consolidated Statement of Operations and Balance Sheet (in millions) for the Debtors only follows: Summarized Consolidated Statement of Operations Five Months Ended May 31, 2002 ------------- Net Sales $ 1,404.0 Costs and Expenses 1,561.9 ------------- Loss from Operations (157.9) Reorganization Items (4.4) Financing Income (Expense) - Net (20.4) Equity in Income of Unconsolidated Subsidiaries 1.0 ------------- Loss Before Income Taxes (181.7) Benefit from Income Taxes 10.3 ------------- Net Loss (171.4) Dividend Requirements on Preferred and Preference Stock 16.5 ------------- Net Loss Applicable to Common Stock $ (187.9) ============= Summarized Consolidated Balance Sheet May 31, 2002 ------------- Assets Current Assets: Cash and cash equivalents $ 37.1 Receivables, less allowances 388.3 Inventories 692.7 Other current assets 17.3 ------------- Total Current Assets 1,135.4 Investments and Miscellaneous Assets 144.6 Property, Plant and Equipment, less accumulated depreciation of $4,198.8 2,569.4 Intangible Pension Asset 225.0 ------------- Total Assets $ 4,074.4 ============= Liabilities and Stockholders' Deficit Current Liabilities: Accounts payable $ 156.1 Accrued employment costs 57.5 Secured debt and capital lease obligations - current 19.7 Other current liabilities 55.4 ------------- Total Current Liabilities 288.7 Secured Debt and Capital Lease Obligations 129.9 Debtor-in-Possession Financing 220.7 Debt Secured by Inventory 289.9 Deferred Gains and Other Long-Term Liabilities 96.4 Liabiliites Subject to Compromise 4,899.9 Total Stockholders' Deficit (1,851.1) ------------- Total Liabilities and Stockholders' Deficit $ 4,074.4 ============= BETHLEHEM STEEL CORPORATION Case No. 01-15288 (BRL) through 01-015302, 01-15308 through 01-15315 (BRL) Monthly Operating Report Schedule of Disbursements
Month Ended Five Months Ended (dollars in thousands) May 31, 2002 May 31, 2002 ------------------------- ------------------------- Bethlehem Steel Corporation $338,392 $1,540,804 Alliance Coating Company, LLC 1,616 6,884 BethEnergy Mines Inc. 263 1,105 Bethlehem Cold Rold Corporation 0 0 Bethlehem Development Corporation 0 0 Bethlehem Rail Corporation 8 108 Bethlehem Steel de Mexico, S.A. de C.V. 74 300 Bethlehem Steel Export Company of Canada, Limited 0 0 Bethlehem Steel Export Corporation 0 0 BethPlan Corp. 0 0 Chicago Cold Rolling, L.L.C. 451 2,625 Eagle Nest Inc. 0 0 Encoat North Arlington, Inc. 6 107 Energy Coatings Company 1 3 Greenwood Mining Corporation 0 0 HPM Corporation 0 0 Kenacre Land Corporation 0 0 LI Service Company 101 598 Marmoraton Mining Company, Ltd. 5 33 Mississippi Coatings Limited Corporation 2,568 2,576 Mississippi Coatings Line Corporation 52 53 Ohio Steel Service Company, LLC 0 0 Primeacre Land Corporation 17 62 ------------------------- ------------------------- $343,554 $1,555,258
Note: Inter-company disbursements are excluded from this schedule. Bethlehem Steel Corporation Case No. 01-15288 (BRL) through 01-015302, 01-15308 through 01-15315 (BRL) Post petition salaries and wages, including employee withholdings and employer related payroll taxes, have been paid in the ordinary course of business. Other post petition taxes, including those for sales and use taxes, property taxes and other taxes have been paid in the ordinary course of business. All insurance policy premiums due, including those for workers compensation and disability insurance have been paid. Accordingly, all such policies remain in force. Details for the above transactions will be provided to U.S. Trustee upon request. -----END PRIVACY-ENHANCED MESSAGE-----