8-K

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                       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):
                                September 4, 2003


                          KENTUCKY ELECTRIC STEEL, INC.
             (Exact Name of Registrant as Specified in its Charter)


         DELAWARE                      0-22416                 61-1244541

(State or Other Jurisdiction   (Commission File Number)       (IRS Employer
     of Incorporation)                                    Identification Number)


                                  P.O. Box 3500
                          Ashland, Kentucky 41105-3500

                     (Address of Principal Executive Office)


       Registrant's telephone number, including area code: (606) 929-1222


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ITEM 5. OTHER EVENTS

     Kentucky Electric Steel, Inc. (the "Company") issued a press release on
September 4, 2003, announcing the completion of the sale of substantially all of
its assets to KES Acquisition Company, LLC for $2,650,000. A copy of the press
release is attached as Exhibit 99.1.


ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS

     (c) The following exhibit is filed as part of this report on Form 8-K.

Exhibit
Number         Description
- -------        -----------

99.1           Press Release of the Company dated September 4, 2003.


                                    SIGNATURE

     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.


                                        KENTUCKY ELECTRIC STEEL, INC.

Date: September 10, 2003                By: /s/ William J. Jessie
                                            ------------------------------------
                                            Name:  William J. Jessie
                                            Title: President and Chief Operating
                                                   Officer

EX-99.1

FOR IMMEDIATE RELEASE - SEPTEMBER 4, 2003

Contacts: Mr. William J. Jessie
          President and Chief Operating Officer
          (606) 929-1256

     ASHLAND, KENTUCKY - Ashland Steel Liquidating Company, formerly known as
Kentucky Electric Steel, Inc. (the "Company"), today announced it had completed
the sale of substantially all of its assets to KES Acquisition Company, LLC
("KES Acquisition") for $2,650,000. The Bankruptcy Court entered an order
approving the sale on August 20, 2003. The Company closed on the sale on
September 2, 2003.

          The Company does not anticipate that any proceeds from the sale of its
assets to KES Acquisition will be distributed to its general unsecured creditors
or its stockholders. On August 12, 2003, the Company filed its proposed
disclosure statement and liquidating plan of reorganization. The Bankruptcy
Court will conduct a hearing on the Company's proposed disclosure statement on
September 26, 2003.

          As previously reported, the Company shut down its production
facilities and filed for bankruptcy protection under Chapter 11 of the U.S.
Bankruptcy Code in the United States Bankruptcy Court for the Eastern District
of Kentucky on February 5, 2003, with the stated intention to facilitate the
orderly sale of its assets.

          This document includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may differ materially
from these expectations due to economic uncertainty, the effects of vigorous
competition, the impact of technological change on the steel business, and
regulatory risks.