Washington Group International Inc – ‘8-K’ for 5/29/01 – EX-99.2

On:  Tuesday, 5/29/01, at 3:57pm ET   ·   For:  5/29/01   ·   Accession #:  912057-1-517833   ·   File #:  1-12054

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         3     13K 
 2: EX-99.1     Miscellaneous Exhibit                                  3     11K 
 3: EX-99.2     Miscellaneous Exhibit                                  2     15K 
 4: EX-99.3     Miscellaneous Exhibit                                  2     12K 

EX-99.2   —   Miscellaneous Exhibit

EX-99.2
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                                                                    EXHIBIT 99.2

[LETTERHEAD OF WASHINGTON GROUP INTERNATIONAL]

MAY 14, 2001

WASHINGTON GROUP INTERNATIONAL, INC. REACHES RESTRUCTURING AGREEMENT WITH BANK
GROUP 

FILES PLAN OF REORGANIZATION AND CHAPTER 11 PETITION TO FACILITATE RESTRUCTURING

 COMPANY RECEIVES DEBTOR-IN-POSSESSION FINANCING

Boise, Idaho - Washington Group International, Inc. (NYSE:WNG) today  
announced that it has reached an agreement in principle with its bank group     
steering committee on a Plan of Reorganization (the Plan) for the Company. To   
facilitate the reorganization, the Company and certain of its subsidiaries today
filed the Plan along with voluntary petitions to restructure under Chapter 11 of
the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Nevada
in Reno.                                                                        

 Most of the Company's domestic subsidiaries are included in the filing.
Those entities excluded from the filing are all Westinghouse Government Services
Companies and related entities; partially owned limited liability companies and 
joint ventures; and foreign subsidiaries and affiliates.                        

The Plan provides that a significant amount of secured debt will be   
exchanged for 100 percent of the equity in the reorganized Company, and that    
certain unsecured trade creditors will be paid in full in either the ordinary   
course of business or upon confirmation of the Plan. In addition, the Plan      
provides that the Company will fund a litigation trust to pursue the Raytheon   
litigation, and that any net proceeds from the litigation will be used to pay   
recoveries to impaired creditors, which will include holders of the Senior      
Notes. It is unlikely there will be any recovery for current holders of the     
Company's common stock or holders of options or other rights to acquire the     
Company's common stock. Implementation of the Plan is subject to compliance with
provisions of Chapter 11.                                                       

   In addition, the Company announced it has received a debtor-in-possession
financing facility from a group of lenders led by Credit Suisse First Boston    
sufficient to fund the Company's ongoing operating needs during the             
restructuring.                                                                  

  Stephen G. Hanks, Washington Group's President, said, "The restructuring
agreement reached with our banks will permit Washington Group to swiftly and    
efficiently move beyond the period of uncertainty that has hung over the Company
since our March 2 announcement of near-term liquidity problems. Now, with       
sufficient cash to fund operations going forward and provide bonding capacity,  
we are in the process of returning this Company to financial viability. We have 
made business development a top priority during the pendency of the             
restructuring process and expect to continue securing new contracts.            

 "Under the Plan announced today, management will remain in place, daily
operations will continue as usual, our employees will be paid and this business 
will move forward. We are absolutely focused on serving our existing clients and
continuing to secure new business."                                             

  During the restructuring process, the Company will carry on its business
with clients, employees, subcontractors and vendors. The Company believes that  
the restructuring agreement reached with the Company's largest creditors will   
provide the Company the stability necessary to complete contracts underway and  
to pursue new opportunities.                                                    

 On March 2, 2001, the Company announced that, due to Raytheon Company's
failure to comply with the terms of the April 2000 stock purchase agreement     
pursuant to which the Company acquired Raytheon Engineers & Constructors (RE&C),
the Company faced a severe, near-term liquidity crisis. As a consequence, the   
Company ceased certain activities on two power projects in Massachusetts related
to the RE&C acquisition. In addition, the Company filed suit against Raytheon   
Company alleging fraud, seeking rescission and, alternatively, unspecified      
damages for breach of contract.                                                 

-7- 

EX-99.2
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    As part of the restructuring and in conjunction with the Plan, the Company
has asked the Court's authorization to pay certain pre-petition, unsecured      
claims that relate to ongoing businesses. Under the Plan, the Company should    
experience no interruption in the flow of goods and services.                   

    The Plan also contemplates that the Company will continue as an integrated
business organized around the same five market-oriented operating units that it 
currently has in place: Government, Industrial/Process, Infrastructure & Mining,
Power, and Petroleum & Chemical.                                                

Washington Group International, Inc., is a leading international      
engineering and construction firm with more than 35,000 employees at work in 43 
states and more than 35 countries. The Company offers a full life-cycle of      
services as a preferred provider of premier science, engineering, construction, 
program management, and development in 14 major markets.                        

MARKETS SERVED

    Energy, environmental, government, heavy-civil, infrastructure and mining,
nuclear-services, operations and maintenance, petroleum and chemicals,          
industrial process, pulp and paper, telecommunications, transportation, and     
water-resources.                                                                

 # # #

This news release contains forward-looking statements within the meaning of the 
Private Securities Litigation Reform Act of 1995, which are identified by the   
use of forward-looking terminology such as MAY, WILL, COULD, SHOULD, EXPECT,    
ANTICIPATE, INTEND, PLAN, ESTIMATE, or CONTINUE or the negative thereof or other
variations thereof. These include, among others, statements with respect to     
Washington Group's ability to secure new contracts, Washington Group's ability  
to meet post-petition commitments, Washington Group's ability to secure         
sufficient bonding capacity, whether Washington Group will receive proceeds from
the Raytheon litigation, the terms of the plan of reorganization and the        
structure of the reorganized company. Forward-looking statements are necessarily
based on various assumptions and estimates and are inherently subject to various
risks and uncertainties, including risks and uncertainties relating to the      
possible invalidity of the underlying assumptions and estimates, the involvement
of Washington Group's creditors and equity holders in the Chapter 11 proceeding,
bankruptcy court approvals incident to Washington Group's operations in Chapter 
11 and the ultimate reorganization of Washington Group, and possible changes or 
developments in social, economic, business industry, market, legal, and         
regulatory circumstances and conditions and other actions taken or omitted to be
taken by third parties, including the corporation's customers, suppliers,       
business partners, and competitors and legislative, regulatory, judicial, and   
other governmental authorities and officials.                                   

FOR FURTHER INFORMATION CONTACT:                                                

WASHINGTON GROUP INTERNATIONAL                                                  
COMMUNICATIONS OPERATIONS CENTER                                                

PHONE: (208) 386-5698                                                           

-8- 

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘8-K’ Filing		Date		First		Last			Other Filings
Filed on / For Period End:		5/29/01
		5/14/01		1
		3/2/01		1					10-Q,  NT 10-K
									List all Filings