Creditors' suit accuses LTV former execs of self-dealing

[Algorem]

http://www.cleveland.com/business/plaindealer/index.ssf?/base/business/1129282594204760.xml&coll=2

Friday, October 14, 2005
Alison Grant
Plain Dealer Reporter

Major creditors of LTV Corp. have sued former Chief Executive William Bricker and other officers and directors of the defunct steel maker for mismanagement that they say drove down the value of its bankruptcy estate by at least $100 million.

The creditors -- among them, Cleveland-Cliffs Inc. and the United Steelworkers of America -- say Bricker and others deliberately misrepresented LTV's true financial condition as the company spun out of control in 2001, a deception that allowed them to preserve their own pay and perks.

The lawsuit also contends that LTV siphoned off tens of millions of dollars to Copperweld Corp., a subsidiary that both Bricker and former Chief Operating Officer John Turner were interested in buying.

A bankruptcy judge ruled in August that the creditors, called the Official Committee of Administrative Claimants, can pursue claims of gross negligence but not intentional negligence...

[sweepster]

1. Notice how much of these shady dealing are going on any more?

Enron, MCI, Tyco, Refco, Bayou funds etc etc etc, Almost every sector is going crazy.

[SoCalDem]

2. "...gross negligence but not intentional negligence..."huh??

gross but not intentionaL?... Guys who are at the top of these corporations are NOT STUPID.. Everything they DO is intentions:puke:

[sweepster]

3. your right. They did not get to the top by being stupid.

These characters know what they do 100% of the time.