Wheeling-Pittsburgh Steel

After 80 years of production, Wheeling-Pittsburgh Steel was forced to file for Chapter 11. That process was complicated when the Steelworkers Union went out on strike to protest the restructuring terms sought by management. The case languished for two years before DRC was brought in. At which point, over 25,000 claims had been filed for $18 billion.

Why it Pays to Think Outside the Box

The unprecedented magnitude of the case demanded a breakthrough approach. In an industry first, DRC created a Chapter 11 Claims Administration Department within the company. In addition to providing an organized map for moving claims through, it facilitated dealing with debtors' and creditors' counsel. During the three years the company spent in Chapter 11, DRC maintained creditors' confidence with monthly presentations.

Getting Results

With the benefit of an organized claims department in place, DRC was able to assist the debtors to reduce the $18 billion in claims filed to $1.8 billion. In addition, they saved the company $1.5-2.0 million in costs while doing so. The company reorganized and, with DRC's subsidiary, DRX Distribution Management, Inc., as its agent, was able to distribute in excess of $600 million in cash and in new marketable securities to its creditors.