Wheeling-Pittsburgh Loses Director
PITTSBURGH (AP) _ The representative of Wheeling-Pittsburgh Steel Corp.’s second-largest shareholder has resigned from the company’s board of directors.
A spokesman for Wheeling-Pittsburgh confirmed Friday that Yuzuru Abe, chairman of Nisshin Steel Co. Ltd., had resigned from the board.
In July, Abe had joined the company’s largest shareholder, Allen E. Paulson, in requesting that U.S. Bankruptcy Judge Warren W. Bentz allow the establishment of a shareholders’ committee that would have a voice in drafting a corporate reorganization plan for the financially troubled company.
Wheeling-Pittsburgh filed under Chapter 11 of federal bankruptcy laws on April 16.
Nisshin had charged that management led by Chairman Dennis J. Carney attempted ″to silence the various groups in this case in favor of the presentation and dominance of only existing management’s position.″
Nisshin General Manager Kiichi Mochizuki could not be reached for comment Friday.
The Tokyo-based company owns 500,000 shares, or 9.8 percent, of Wheeling- Pittsburgh common stock.
Nisshin became a Wheeling-Pittsburgh investor in early 1984, when it agreed to jointly build a $40 million steel coating plant in Follansbee, W.Va.
Judge Bentz in July authorized Wheeling-Pittsburgh to dissolve its labor contract and cut wages and benefits as it saw fit.
About 8,200 workers walked off the job at nine Wheeling-Pittsburgh plants in Pennsylvania, Ohio and West Virginia on July 21 in a protest against the steelmaker’s court-approved termination of its labor contract.