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Tuesday, ,7une 14, 1988 <br />TACfLtIENT "H" <br />Kaiser Steel Co-rp. Names .New CEO <br />Management Change Part of Firm's Reorganization Plan <br />By NANCY RIVERA BROOKS, <br />Times Staff A'riter <br />Troubled Kaiser Steel Corp., <br />whtch is operating under bank- <br />ruptcy law protection, said Monday <br />that i! has named a ttpw ~h;>( <br />executive as part of a management <br />change negotiated with creditors <br />early this year. <br />Richard E. Stoddard, a Denver <br />lawyer and certified public ac- <br />countant, was selected following a <br />three-mon[h national search con- <br />ducted by a division of Price Wa- <br />terhouse 8: Co. Stoddard, 37, most <br />recently was managing director o[ <br />Roath &Brega, the taw firm repre- <br />senting Kaiser Steel's retirees. <br />Under the reorganization plan <br />submitted in March, Kaiser Steel's . <br />6.000 retirees will become major <br />shareholders in the company after <br />it emerges from bankruptcy pro- <br />ceedings. Itwill berenamed Kaiser <br />Holdings. <br />In February, 1987, Kaiser Steel <br />filed for protection from iu credi- <br />tors under Chapter 11 of the U.S. <br />Bankruptcy Code, which allows a <br />company to continue operating <br />while it works out a plan to pay its <br />creditors. <br />Kaiser Steel has sold much of the <br />company, including its steel busi- <br />ness. It is ,tncicipated that the <br />company's cost operations will be- <br />come the prcperty of the secured <br />creditors folicwingthe reorganize= <br />Uon, Stoddazd said. <br />Stoddard replaces Bruce E. Hen• <br />dry as chief e:tecutive. Hendry wilt <br />continue as president and chairman <br />DF-ILY NEWS <br />BUSINESS ,SECTION <br />Tuesday, ,7une 14, 1988 <br />sir n E <br />= "Rkhiirtl E. Stode'ard, a Denver <br />lawyer and certified public aaountant, has <br />peen named chief esaattive of Rancho <br />Cuiamonga=based Kaiser Steel Corp., <br />which it reorg~bizing under the protection <br />bta tcderal bankruptcy court. The <br />appointment of Stoddard, managing <br />director of the Denva~ law firm of Roath & <br />Brega, has been approved by Kaiser s <br />pruemtred creditors and has been submitted <br />lathe 17:S. Barikn[ptcy Court in. Denver. <br />Kaiser filed foc Chapter 1 I protection in <br />Febrttar)' ~ 987. ~_~~ ~~ sea mt wra service. <br />of Kaiser Steel until final approval <br />of the reorganization plan. <br />Hendry then will resign both <br />pwitions but will remain as a <br />director of Kaiser Holdings. Flen- <br />dry will continue to oversee the <br />coal operations. <br />Kaiser Steel's future rests on the <br />success of three projects: the de- <br />velopment of a 1,200-acre industri- <br />al park in Fontana, the develop- <br />ment of a solid waste dump at the <br />company's abandoned Eagle <br />Mountain iron ore mine and the <br />expansion of an existing waste <br />treatment plant in Fontana <br />"It's clearly a huge opportunity <br />and there are clearly some down- <br />sides," Stoddard said. "There is <br />clearly a risk that we will not be <br />able to make i! happen. Obviously, I <br />wouldn't have taken the job i! I <br />thought the possible upside didn't <br />justify the risk." <br />Stoddard said the rnorganization <br />plan coWd,be approved by early <br />tall. <br />Under the plan, two trusts for <br />retirees would receive 58% of the <br />company's new common stock. The <br />Pension Benefit Guaranty Corp., <br />which assumed retiree medical <br />benefits last yeaz, will receive 29 % <br />of the stock. <br />Richard E.Sroddard <br />