SUMMARY: Crucible Materials Corporation and Crucible Development Corporation sought bankruptcy court approval today of a memorandum of agreement with the United Steelworkers (USW). The proposed memorandum of agreement provides the terms of a settlement between Crucible and the USW relating to Crucible's attempt to reject three collective bargaining agreements with the USW pursuant to section 1113 of the Bankruptcy Code.

Both Crucible entities voluntarily filed for chapter 11 protection in May 2009 and have since sold a substantial portion of their assets. Prior to the bankruptcy and asset sales, Crucible was a leading manufacturer of specialty metals products for the automotive, aerospace, and petrochemical industries. However, Crucible's operations are now limited to selling or otherwise disposing of the companies' remaining assets.

In September, Crucible sought court authority to reject its three CBAs with the USW pursuant to section 1113 and to terminate certain medical benefits provided to USW retirees pursuant to section 1114. The USW has challenged Crucible's motion, arguing that Crucible has not met the requirements of sections 1113 and 1114 by, among other things, failing to negotiate in good faith. To date, the court has not held a hearing to consider the motion and Crucible and the USW have not reached a settlement proposal. Among other terms, the USW consents to a distress termination of Crucible's pension plan for USW retirees and the termination of retiree health benefits as of November 30th.

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