LTV Seeks Approval to Halt Its Steel Operations

LTV Corp., the second-largest U.S. steel maker, on Tuesday asked a bankruptcy court for permission to close its mills and put them up for auction after it ran out of cash and failed to win union concessions.

LTV, which filed for Chapter 11 protection last December, said it also asked U.S. Bankruptcy Judge William T. Bodoh in Youngstown for permission to abandon its labor contracts. The company has 7,800 employees and more than 45,000 retirees.

“After so many months of commitment and hard work by all parties, it is very disappointing to find our road to success blocked,” said William H. Bricker, chairman and chief executive of Cleveland-based LTV.

The United Steelworkers of America criticized LTV’s decision. The choice to shut down while the union was negotiating with the company’s creditors “was reckless and irresponsible,” said Leo W. Gerard, union president.

In July, LTV reached an agreement with the union that allowed the company to fire 1,300 workers, halt raises and cut benefits. At the time, LTV said the accord would help avert a shutdown.

A hearing on LTV’s request has been scheduled for Dec. 4.

LTV shares fell 4.4 cents to 2.4 cents in over-the-counter trading.