U.S. Bankruptcy Judge Marilyn Shea-Stonum filed an opinion late Wednesday concerning confirmation of the two proposed WCI Steel, Inc. reorganization plans previously presented to the court.

One of the proposed reorganization plans, which was sponsored by its ultimate parent company, The Renco Group, Inc., would have enabled WCI to emerge from bankruptcy under its current ownership with a new labor contract in place.

"We are obviously disappointed that completion of the process will be delayed,” says Edward R. Caine, WCI Vice Chairman and Chief Restructuring Officer. “But WCI is resolute in our desire to bring forth a reorganization plan that will be confirmed. WCI is a solid company that will ultimately emerge from bankruptcy as a viable player in the steel market."

The judge’s opinion reflects the conclusion that neither plan meets all of the legal requirements for confirmation. The opinion is not a formal ruling on the plans, however, and the judge has said that she will not enter such a ruling for the next several weeks. The opinion contemplates a period of moratorium for further efforts by both plan sponsors to reach a consensual agreement.

Caine said that WCI remains committed to presenting a reorganization plan that maximizes the long-term value of the WCI estate. He added that the court's opinion did indicate that a framework for a confirmable plan exists and suggested that the parties explore possible amendments to the WCI plan as a means to that end.

Caine stressed that the court's opinion will not affect company operations, noting that WCI has reported strong profits in recent months and that the company's financial outlook remains positive.

"We have the financial capability to meet our commitments to our bankers, vendors and employees," Caine said. "We've greatly appreciated their support during these proceedings and we ask for their continued patience as we work through the reorganization process."

WCI is an integrated steelmaker producing more than 185 grades of custom and commodity flat-rolled steel at its Warren, Ohio, facility, which employs approximately 1650 employees. WCI products are used by steel service centers, convertors and the automotive and construction markets. WCI filed a voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code on Sept. 16, 2003.