Court Approves Metal Management Reorganization

Chicago, IL - Metal Management, Inc., received court approval for its plan of reorganization from the United States Bankruptcy Court for the District of Delaware. The plan provides for the company's emergence from Chapter 11 on or before June 29, 2001. According to Metal Management, the plan of reorgan-ization received the overwhelming sup-port of all of its creditor constituencies, including some 90 percent of the general unsecured creditors voting on the plan.

Upon effectiveness of the plan, Metal Management will have a new board of directors comprised of Albert A. Cozzi, the company's chairman and chief executive officer, John T. DiLaqua, Harold "Skip" Rouster, Kevin P. McGuiness, and Daniel Dienst. Messrs. DiLaqua, Rouster, and McGuiness are scrap metal industry veterans, having spent decades with industry giants, Philips Services/Luria Brothers, The David J. Joseph Company and Simsmetal Australia, respectively. Mr. Dienst is a managing director of CIBC World Markets, a financial services firm with global business operations.

In accordance with the plan of reorganization, approximately $215 million of indebtedness will be converted into common stock of reorganized Metal Management, and approximately $4 million of other prepetition debt of the company will be paid out at a discount over time. The debt service obligation of the company, as a result of the restructuring, will be reduced by approximately $18 million annually. Existing shareholders of Metal Manage-ment will receive on a prorata basis 100,000 shares of the new common stock.

Mr. Cozzi said, "I am extremely pleased that Metal Management is emerging from Chapter 11 before the end of this month. The support for the plan of reorganization from our senior lenders, bondholders and unsecured creditors has been overwhelming. The deleveraging of our capital structure that will result from the implementation of the plan will allow Metal Management to continue to build on the base of business that we were able to maintain intact during the bankruptcy."

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