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and compromise, determines Chat the Settlement Agreement should be approved, SC Se appropriate that the order approving the Settlement Agreement bind all Retirees who benefit thereby. Araumant In Euooort Of Settlement Beeed on the accounting of the reserve funds that was provided by Equitable, the parties. agreed that at least $416,224.64 must be returned from the reserves to Reorganized CFiI for the benefit of Retirees. Various disputes existed concerning whether any additional amounts should properly be included Sn the reserves that Equitable wee required to return pursuant [o the Judgment, including Equf table's right to a designated retention reserve Sn [he amount of $78,000, the appropriate rate of interest Chet Equitable should pay with respect to the reserves St withheld and the eppropri ate time period Chet interest should accrue. Equitable also vigorously disputed Reorganized CF4I'e right to recover attorneys' fees that Reorganized CP6I estimates to be approximately $250,000 over the six 16) years that these fsauee were litigated. Depending on how each of these issues was resolved, Reorganized CFGI estimates Chet Equitable'e obligation could have been ae low ae approximately $500,000 and ee high ae approximately $1,000,000, Sf Reorganized CFGI could recover the maximum amount of principal, the maximum amount of interest for the maximum time period and ell of 1[e attorneys' fees. Reorganl xed CPiI filed end hoe pro9ecuted the Amended Complaint on behalf of [he Retirees to ovoid exposure end claims under 6AISA. The proposed settlement in the sum of $745,600 represents a good faith compromf se among the part iee of the range of amounts for which Equitable may be liable. Moreover, pursuant [o the Settlement Agreement, Equitable Se releeeing its claim against CFfiI Steel Corporation's estate Sn the approximate amount of $391,000, which eaves Reorganl zed CF6I additional litigation expense and avoids the risk of increasing the amount of claims ago Snet CF4I Steel Corporatlon'a estate by such amount. In addition, Reorganl zed CFGI named the USWA ee a party defendant hecavee s maiorlty of the Retirees on whose behalf Reorganized CF4I'e Amended Complaint wee brought were former employees of CFfiI Steel Corporation that were represented by the USWA and the USWA hoe Joined Sn the Settlement Agreement. In summary, because Reorganized CFGI Se recovering a eubetantial portion of the maximum amount It could recover iE Renraani v.ad CRLT wn,~l ri n all ___ a_ll lae,~na hg_____ t!:C ~~~~ and risk to litigate further mey^no[ slgnSficantly increase^^ additional recoveries end because the USWA, which had represented a majority of the Retlreee when they worked for CFGI Steel Corporation, supports Che proposed settlement and ie a party to the Settlement Agreement, St Se Che business Judgment of the Responsible Officer/Responsible Director of Reorganized CP4I that the Settlement Agreement Se in the beet intereate of CFGI Steal Corporation's estate, the creditors of its estate and the Retirees and Chet the Settlement Agreement should be approved and consummated ae proposed. DATED Ch1e 4th day of June 1997. ~wmrwm RAY, OUINNEY i NEBEKER /e/ Weston L. Herrie Weston L. Harris Attorneys for Reorganized CFGI Steel Corporation COHEN, NEISS AND SIMON /e/ Ann E. O'Shea Ann E. O'Shea Attorneys for United Steel Workeze Of Ame rice