<PHOENIX STEEL CORP> IN NEW DEBT AGREEMENT
Phoenix Steel Corp said it
reached a revised debt reorganization agreement under which its
unsecured trade creditors would receive up to 50 cts on the dlr
as well as a share in future profits or sale proceeds.
    Phoenix said it arranged the new agreement with its major
shareholder, <Guardian Ventures>, and a committee representing
its unsecured creditors. The pact, the company said, replaces a
plan that was proposed last December.
    The plan must be approved by April 1 by 80 pct of Phoenix's
unsecured and other creditors, the company said.
    Phoenix said the new plan increases the amount to be paid
unsecured creditors to 50 cts from 40 cts on the dlr and adds
terms for creditor participation in future profits or sale
proceeds.
    In exchange, the company said the creditors must agree not
to sue the company or force it into involuntary bankruptcy.
    The creditors must also withdraw claims against Phoenix,
Guardian and others, Phoenix said.
 Reuter
