Document:

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                                                                   EXHIBIT 10.14

                             SUBORDINATION AGREEMENT

         THIS SUBORDINATION AGREEMENT ("Subordination Agreement") dated as of
November 15, 1999 is by and among Congress Financial Corporation, a Delaware
corporation, in its individual capacity ("Congress") and in its capacity as
administrative agent and collateral agent ("Agent") for the financial
institutions parties to the Loan Agreement (as hereinafter defined) as lenders,
The CIT Group/Business Credit, Inc., a New York corporation, in its individual
capacity and in its capacity as co-agent for such lenders ("CIT") and The Renco
Group, Inc., a New York corporation ("Junior Creditor" as hereinafter further
defined). Senior Creditors (as hereinafter further defined) and Junior Creditor
are sometimes individually referred to herein as "Creditor" and collectively as
"Creditors."

                               W I T N E S S E T H:

         WHEREAS, Junior Creditor has made or may make a loan or provide other
financial accommodations to Lodestar Energy, Inc., a Delaware corporation
("Debtor" as hereinafter further defined), which loans or other financial
accommodations are and shall be unsecured; and

         WHEREAS, Senior Creditors have entered into financing arrangements with
Debtor, pursuant to which Senior Creditors may, upon certain terms and
conditions, make loans and provide other financial accommodations to Debtor
secured by certain assets and properties of Debtor; and

         WHEREAS, in order to induce Senior Creditors to continue the financing
arrangements with Debtor, Junior Creditor has agreed to the subordination in
right of payment of certain existing and future obligations of Debtor to Junior
Creditors to the payment of the existing and future obligations of Debtor to
Senior Creditors and related matters as set forth below;

         NOW THEREFORE, in consideration of the mutual benefits accruing to
Creditors hereunder and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto do hereby agree
as follows:

          1.  DEFINITIONS

         As used above and in this Subordination Agreement, the following terms
shall have the meanings ascribed to them below:

         1.1 "AGENT" shall mean Congress Financial Corporation, a Delaware
corporation in its capacity as administrative agent and collateral agent for the
other Senior Creditors.

         1.2 "CIT" shall mean The CIT Group/Business Credit, Inc., a New York
corporation, in its individual capacity and in its capacity as co-agent for the
other Senior Creditors, and its successors and assigns.

         1.3 "CREDITORS" shall mean, collectively, Senior Creditors and Junior
Creditor and their respective successors and assigns.

         1.4 "DEBTOR" shall mean Lodestar Energy, Inc., a Delaware corporation
and its successors and assigns, including, without limitation, a receiver,
trustee or debtor-in-possession on behalf of such person or on behalf of any
such successor or assign.

         1.5 "GUARANTOR" shall mean Lodestar Holdings, Inc., a Delaware
corporation and its successors and assigns.

         1.6 "JUNIOR CREDITOR" shall mean The Renco Group, Inc., a New York
corporation, and its successors and assigns.

         1.7 "JUNIOR DEBT" shall mean all obligations, liabilities and
indebtedness of every kind, nature and description owing by Debtor to Junior
Creditor pursuant to or in connection with the loans to be made by Junior
Creditor to Debtor pursuant to a request by Agent under the Subordinated Loan
Letter Agreement, including principal, interest, charges, fees, premiums,
indemnities and expenses, however evidenced, whether now existing or hereafter
arising, and whether arising after the commencement of any case with respect to
Debtor under the U.S. Bankruptcy Code or any similar statute (and including,
without limitation, any principal, interest, fees, costs, expenses and other
amounts, whether or not such amounts are allowable in whole or in part, in any
such case

                                       1
<PAGE>

or similar proceeding), whether direct or indirect, absolute or contingent,
joint or several, due or not due, primary or secondary, liquidated or
unliquidated, secured or unsecured, and whether arising directly or howsoever
acquired by Junior Creditor.

         1.8 "PERSON" or "PERSON" shall mean any individual, sole
proprietorship, partnership, corporation (including, without limitation, any
corporation which elects subchapter S status under the Internal Revenue Code of
1986, as amended), limited liability company, limited liability partnership,
business trust, unincorporated association, joint stock company, trust, joint
venture, or other entity or any government or any agency or instrumentality or
political subdivision thereof.

         1.9 "SENIOR CREDITORS" shall mean Agent, CIT and the financial
institutions from time to time parties to the Senior Creditor Agreements as
lenders and the successors and assigns (and including any other lender or group
of lenders that at any time refinances, replaces or succeeds to all or any
portion of the Senior Debt or is otherwise party to the Senior Creditor
Agreements) of each of the foregoing.

         1.10 "SENIOR CREDITOR AGREEMENTS" shall mean, collectively, the
Amended and Restated Loan and Security Agreement, dated May 15, 1998, by and
among Senior Creditors, Debtor and Guarantor and all agreements, documents and
instruments at any time executed and/or delivered by Debtor or any other person
to, with or in favor of Senior Creditor in connection therewith or related
thereto, as all of the foregoing now exist or may hereafter be amended,
modified, supplemented, extended, renewed, restated, refinanced, replaced or
restructured (in whole or in part and including any agreements with, to or in
favor of any other lender or group of lenders that at any time refinances,
replaces or succeeds to all or any portion of the Senior Debt).

         1.11 "SENIOR DEBT" shall mean all obligations, liabilities and
indebtedness of every kind, nature and description owing by Debtor to Senior
Creditors and/or their affiliates, or participants, including principal,
interest, charges, fees, premiums, indemnities and expenses, however evidenced,
whether as principal, surety, endorser, guarantor or otherwise, arising under
the Senior Creditor Agreements, whether now existing or hereafter arising,
whether arising before, during or after the initial or any renewal term of the
Senior Creditor Agreements or after the commencement of any case with respect to
Debtor under the U.S. Bankruptcy Code or any similar statute (and including,
without limitation, any principal, interest, fees, costs, expenses and other
amounts, whether or not such amounts are allowable either in whole or in part,
in any such case or similar proceeding), whether direct or indirect, absolute or
contingent, joint or several, due or not due, primary or secondary, liquidated
or unliquidated, secured or unsecured, and whether arising directly or howsoever
acquired by any Senior Creditor.

         1.12 "SUBORDINATED LOAN LETTER AGREEMENT" shall mean the letter
agreement, dated on or about the date hereof, by and among Junior Creditor,
Guarantor, Debtor, Agent and CIT, as the same now exists or may hereafter be
amended, modified, supplemented, extended, renewed, restated or replaced.

         1.13 All terms used herein which are defined in the Uniform Commercial
Code as in effect in the State of New York, unless otherwise defined herein
shall have the meanings set forth therein. All references to any term in the
plural shall include the singular and all references to any term in the singular
shall include the plural.

         2.  SUBORDINATION OF JUNIOR DEBT

         2.1 SUBORDINATION. Except as specifically set forth in Section 2.2
below, Junior Creditor hereby subordinates its right to payment and satisfaction
of the Junior Debt and the payment thereof, directly or indirectly, by any means
whatsoever, is deferred, to the final payment and satisfaction in full of all
Senior Debt.

         2.2 PERMITTED PAYMENTS. Senior Creditors hereby agree that,
notwithstanding anything to the contrary contained in Section 2.1, Debtor may
make and Junior Creditor may receive and retain payments in respect of the
Junior Debt so long as the following conditions are satisfied (or as permitted
in accordance with Section 3(b) of the Subordinated Loan Letter Agreement), as
reasonably determined by Agent:

                  (a) as of the date of any such payment and after giving effect
thereto, the Excess Revolving Credit Availability (as such term is defined in
the Loan Agreement) shall not be less than $12,000,000 and for each of the
thirty (30) consecutive days immediately prior to any such payment, Excess
Revolving Credit Availability shall not have been less than $12,000,000; and

                  (b) as of the date of any such payment and after giving effect
thereto, no Event of Default or act, condition or event which with notice or
passage of time or both would constitute an Event of Default shall exist or have
occurred and be continuing.

                                      -2-
<PAGE>

          2.3  DISTRIBUTIONS.

                  (a) In the event of any distribution, division, or
application, partial or complete, voluntary or involuntary, by operation of law
or otherwise, of all or any part of the assets of Debtor or the proceeds thereof
to the creditors of Debtor or readjustment of the obligations and indebtedness
of Debtor, whether by reason of liquidation, bankruptcy, arrangement,
receivership, assignment for the benefit of creditors, marshalling of assets of
Debtor or any other action or proceeding involving the readjustment of all or
any part of indebtedness of Debtor or the application of the assets of Debtor to
the payment or liquidation thereof, or upon the dissolution or other winding up
of Debtor's business, or upon the sale of all or substantially all of Debtor's
assets, then, and in any such event, (i) Senior Creditors shall first receive
final payment in full in cash of all of the Senior Debt prior to the payment of
all or any part of the Junior Debt, and (ii) Senior Creditors shall be entitled
to receive any payment or distribution of any kind or character, whether in
cash, securities or other property, which shall be payable or deliverable in
respect of any or all of the Junior Debt.

                  (b) In order to enable Agent to enforce the rights of Senior
Creditors under Section 2.3(a) above, Agent is hereby irrevocably authorized and
empowered (in its own name or in the name of Senior Creditors or Junior Creditor
or otherwise), but shall have no obligation, to enforce claims comprising any of
the Junior Debt by proof of debt, proof of claim, suit or otherwise and take
generally any action which Junior Creditor might otherwise be entitled to take,
as Agent may deem necessary or advisable for the enforcement of its rights or
interests hereunder, for the benefit of Senior Creditors, if in the
determination of Agent, Junior Creditor has not taken such actions or is not
diligently pursuing the same.

                  (c) To the extent reasonably necessary for Senior Creditors to
realize the benefits of the subordination of the Junior Debt provided for herein
(including the right to receive any and all payments and distributions which
might otherwise be payable or deliverable with respect to the Junior Debt in any
proceeding described in Section 2.3(a) or otherwise), Junior Creditor shall
execute and deliver to Agent such instruments or documents (together with such
assignments or endorsements as Agent shall deem necessary), as may be requested
by Agent.

          2.4 PAYMENTS RECEIVED BY JUNIOR CREDITOR. Except for payments received
by Junior Creditor as provided in Section 2.2 above, should any payment or
distribution or security or instrument or proceeds thereof be received by the
Junior Creditor in respect of the Junior Debt, Junior Creditor shall receive and
hold the same in trust, as trustee, for the benefit of Senior Creditors,
segregated from other funds and property of Junior Creditor and shall forthwith
deliver the same to Agent for the benefit of Senior Creditors (together with any
endorsement or assignment of Junior Creditor where necessary), for application
to any of the Senior Debt. In the event of the failure of Junior Creditor to
make any such endorsement or assignment to Agent, Agent, or any of its officers
or employees, are hereby irrevocably authorized on behalf of Junior Creditor to
make the same.

          2.5 INSTRUMENT LEGEND AND NOTATION. Any instrument at any time
evidencing the Junior Debt, or any portion thereof, shall be permanently marked
on its face with a legend conspicuously indicating that payment thereof is
subordinate in right of payment to the Senior Debt and subject to the terms and
conditions of this Subordination Agreement, and (a) after being so marked
certified copies thereof shall be delivered to Agent and (b) the original of any
such instrument shall be immediately delivered to Agent upon Agent's request, at
any time on or after the occurrence of an event of default under the Senior
Creditor Agreements. In the event any legend or endorsement is omitted, Agent,
or any of its officers or employees, are hereby irrevocably authorized on behalf
of Junior Creditor to make the same. No specific legend, further assignment or
endorsement or delivery of notes, guarantees or instruments shall be necessary
to subject any Junior Debt to the subordination thereof contained in this
Agreement.

          3.  COVENANTS, REPRESENTATIONS AND WARRANTIES

          3.1 ADDITIONAL COVENANTS. Junior Creditor and Debtor agree in favor of
Senior Creditors that:

                  (a) except as specifically set forth in Section 2.2 above,
Debtor shall not, directly or indirectly, make and Junior Creditor shall not,
directly or indirectly, accept or receive any payment or any prepayment or
non-mandatory payment or any payment pursuant to acceleration or claims of
breach or any payment to acquire Junior Debt or otherwise in respect of any
Junior Debt;

                  (b) notwithstanding any rights or remedies available to it
under its agreements, applicable law or otherwise, Junior Creditor shall not,
directly or indirectly, (i) seek to collect from Debtor any of the Junior Debt
or (ii) commence any action

                                      -3-

<PAGE>

or proceeding against Debtor or its properties under the U.S. Bankruptcy Code or
any state insolvency law or any similar present or future statute, law or
regulation or any proceedings for voluntary liquidation, dissolution or other
winding up of Debtor's business, or the appointment of any trustee, receiver or
liquidator for Debtor or any part of its properties or any assignment for the
benefit of creditors or any marshalling of assets of Debtor or (iii) take any
other action against Debtor or its properties;

                  (c) Debtor shall not grant to Junior Creditor and Junior
Creditor shall not acquire any security interest, lien, claim or encumbrance on
any assets or properties of Debtor or any guarantees for any of the Junior Debt;

                  (d) the terms and conditions of the Junior Debt shall be
acceptable in all respects to Agent;

                  (e) Junior Creditor and Debtor shall not directly or
indirectly amend, modify, alter or change in any terms of the Junior Debt or any
other provisions of any agreement, document or instruments to the extent such
provision governs or affects the Junior Debt without the prior written consent
of Agent;

                  (f) Junior Creditor shall not sell, assign, pledge, encumber
or otherwise dispose of any of the Junior Debt and guarantees, if any, or
subordinate any of the Junior Debt to any indebtedness of Debtor other than the
Senior Debt;

                  (g) Junior Creditor and Debtor shall, at any time or times
upon the request of Agent, promptly furnish to Agent a true, correct and
complete statement of the outstanding Junior Debt; and

                  (h) Junior Creditor and Debtor shall execute and deliver to
Agent such additional agreements, documents and instruments and take such
further actions as may be reasonably necessary or desirable in the opinion of
Agent to effectuate the provisions and purposes of this Subordination Agreement
for the benefit of Senior Creditors.

          3.2 ADDITIONAL REPRESENTATIONS AND WARRANTIES. Junior Creditor and
Debtor represent and warrant to Senior Creditors that:

                  (a) Junior Creditor has no security interest, lien or
encumbrance on any assets and properties of Debtor and the Junior Debt is
unsecured;

                  (b) Junior Creditor is the exclusive legal and beneficial
owner of all of the Junior Debt;

                  (c) none of the Junior Debt is subject to any lien, security
interest, financing statements, subordination, assignment or other claim, except
in favor of Agent for the benefit of Senior Creditors; and

                  (d) this Subordination Agreement constitutes the legal, valid
and binding obligations of Junior Creditor, enforceable in accordance with its
terms except as such enforceability may be limited by (i) bankruptcy,
insolvency, reorganization, moratorium or similar laws of general applicability
affecting the enforcement of creditors' rights and (ii) the application of
general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

          3.3 WAIVERS. Notice of acceptance hereof, the making of loans,
advances and extensions of credit or other financial accommodations to, and the
incurring of any expenses by or in respect of, Debtor by Senior Creditors, and
presentment, demand, protest, notice of protest, notice of nonpayment or default
and all other notices to which Junior Creditor and Debtor are or may be entitled
are hereby waived (except as expressly provided for herein, in the Subordinated
Loan Letter Agreement or as to Debtor, in the Senior Creditor Agreements).
Junior Creditor also waives notice of, and hereby consents to, (a) any
amendment, modification, supplement, renewal, restatement or extensions of time
of payment of or increase or decrease in the amount of any of the Senior Debt or
to the Senior Creditor Agreements or any collateral at any time granted to or
held by Agent for the benefit of Senior Creditors, (b) the taking, exchange,
surrender and releasing of collateral at any time granted to or held by Agent
for the benefit of Senior Creditors or guarantees now or at any time held by or
available to Agent for the benefit of Senior Creditors for the Senior Debt or
any other person at any time liable for or in respect of the Senior Debt, (c)
the exercise of, or refraining from the exercise of any rights against Debtor or
any other obligor or any collateral at any time granted to or held by Agent for
the benefit of Senior Creditors, (d) the settlement, compromise or release of,
or the waiver of any default with respect to, any of the Senior Debt, and/or (e)
Agent's election, in any proceeding instituted under the U.S. Bankruptcy Code of
the application of Section 1111(b)(2) of the U.S. Bankruptcy Code. Any of the
foregoing shall not, in any manner, affect the terms hereof or impair the

                                      -4-

<PAGE>

obligations of Junior Creditor hereunder. All of the Senior Debt shall be deemed
to have been made or incurred in reliance upon this Subordination Agreement.

          3.4 SUBROGATION; MARSHALLING. Junior Creditor shall not be subrogated
to, or be entitled to any assignment of any Senior Debt or Junior Debt or of any
collateral for or guarantees or evidence of any thereof until all of the Senior
Debt is paid and satisfied in full. Junior Creditor hereby waives any and all
rights to have any collateral or any part thereof granted to or held by Agent
for the benefit of Senior Creditors marshalled upon any foreclosure or other
disposition of such collateral by Agent for the benefit of Senior Creditors or
Debtor with the consent of Senior Creditors.

          3.5 NO OFFSET. In the event Junior Creditor at any time incurs any
obligation to pay money to Debtor, Junior Creditor hereby irrevocably agrees
that it shall pay such obligation in cash or cash equivalents in accordance with
the terms of the contract governing such obligation and shall not deduct from or
setoff against any amounts owed by the Junior Creditor to Debtor in connection
with any such transaction any amounts the Junior Creditor claims are due to it
with respect to the Junior Debt.

          4. MISCELLANEOUS

          4.1 AMENDMENTS. Any waiver, permit, consent or approval by any
Creditor of or under any provision, condition or covenant to this Subordination
Agreement must be in writing and shall be effective only to the extent it is set
forth in writing and as to the specific facts or circumstances covered thereby.
Any amendment of this Subordination Agreement must be in writing and signed by
each of the parties to be bound thereby.

                                      -5-
<PAGE>

          4.2  SUCCESSORS AND ASSIGNS.

                  (a) This Subordination Agreement shall be binding upon the
parties hereto and their respective successors and assigns and shall inure to
the benefit of each of Creditors and its respective successors, participants and
assigns.

                  (b) Senior Creditors reserve the right to grant participations
in, or otherwise sell, assign, transfer or negotiate all or any part of, or any
interest in, the Senior Debt and the collateral securing same; PROVIDED, THAT,
Junior Creditor shall not be obligated to give any notices to or otherwise in
any manner deal directly with any participant in the Senior Debt and no
participant shall be entitled to any rights or benefits under this Subordination
Agreement except through Senior Creditors. In connection with any participation
or other transfer or assignment, Senior Creditors (i) may disclose to such
assignee, participant or other transferee or assignee all documents and
information which Senior Creditors now or hereafter may have relating to the
Senior Debt or any collateral and (ii) shall disclose to such participant or
other transferee or assignee the existence and terms and conditions of this
Subordination Agreement.

                  (c) In connection with any assignment or transfer of any or
all of the Senior Debt, or any or all rights of Agent in the property of Debtor
(other than pursuant to a participation), Junior Creditor agrees to execute and
deliver an agreement containing terms substantially identical to those contained
herein in favor of any such assignee or transferee and, in addition, will
execute and deliver an agreement containing terms substantially identical to
those contained herein in favor of any third person who succeeds to or replaces
any or all of Senior Creditors' financing of Debtor, whether such successor
financing or replacement occurs by transfer, assignment, "takeout" or any other
means.

          4.3 INSOLVENCY. This Subordination Agreement shall be applicable both
before and after the filing of any petition by or against Debtor under the U.S.
Bankruptcy Code and all converted or succeeding cases in respect thereof, and
all references herein to Debtor shall be deemed to apply to a trustee for Debtor
and Debtor as debtor-in-possession. The relative rights of Senior Creditors and
Junior Creditors to repayment of the Senior Debt and the Junior Debt,
respectively, and in or to any distributions from or in respect of Debtor or any
proceeds of Debtor's property and assets, shall continue after the filing
thereof on the same basis as prior to the date of the petition, subject to any
court order approving the financing of, or use of cash collateral by, Debtor as
debtor-in-possession.

          4.4 BANKRUPTCY FINANCING. If Debtor shall become subject to a
proceeding under the U.S. Bankruptcy Code and if Senior Creditors desire to
permit the use of cash collateral or to provide financing to Debtor under either
Section 363 or Section 364 of the U.S. Bankruptcy Code, Junior Creditor agrees
as follows: (a) adequate notice to Junior Creditor shall have been provided for
such financing or use of cash collateral if Junior Creditor receives notice five
(5) business days prior to the entry of the order approving such financing or
use of cash collateral and (b) no objection will be raised by Junior Creditor to
any such use of cash collateral or financing. For purposes of this Section,
notice of a proposed financing or use of cash collateral shall be deemed given
when given in the manner prescribed by Section 4.5 hereof to Junior Creditor.

          4.5 NOTICES. All notices, requests and demands to or upon the
respective parties hereto shall be in writing and shall be deemed to have been
duly given or made: if delivered in person, immediately upon delivery; if by
telex, telegram or facsimile transmission, immediately upon sending and upon
confirmation of receipt; if by nationally recognized overnight courier service
with instructions to deliver the next business day, one (1) business day after
sending; and if mailed by certified mail, return receipt requested, five (5)
days after mailing. All notices, requests and demands are to be given or made to
the respective parties at their addresses set forth below (or to such other
addresses as either party may designate by notice in accordance with the
provisions of this Section:

<TABLE>
<S>                       <C>
To Agent:                 Congress Financial Corporation
                          1133 Avenue of the Americas
                          New York, New York 10036
                          Attention: Mr. Andrew W. Robin

To Junior Creditor:       The Renco Group, Inc.
                          30 Rockefeller Plaza
                          New York, New York 10112
                          Attention: Mr. Ira L. Rennert
</TABLE>

                                      -6-

<PAGE>

Either Creditor may change the address(es) to which all notices, requests and
other communications are to be sent by giving written notice of such address
change to the other Creditor in conformity with this Section 4.5, but such
change shall not be effective until notice of such change has been received by
the other Creditor.

          4.6 COUNTERPARTS. This Subordination Agreement may be executed in any
number of counterparts, each of which shall be an original with the same force
and effect as if the signatures thereto and hereto were upon the same
instrument.

          4.7 GOVERNING LAW. The validity, construction and effect of this
Subordination Agreement shall be governed by the laws of the State of New York
(without giving effect to principles of conflicts of law).

          4.8 CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL. Each of the parties
hereto hereby irrevocably consents to the non-exclusive jurisdiction of the
Supreme Court of the State of New York in New York County and the United States
District Court for the Southern District of New York and waives trial by jury in
any action or proceeding with respect to this Subordination Agreement.

          4.9 COMPLETE AGREEMENT. This written Subordination Agreement is
intended by the parties as a final expression of their agreement and is intended
as a complete statement of the terms and conditions of their agreement.

          4.10 NO THIRD PARTIES BENEFITED. Except as expressly provided in
Section 4.2, this Subordination Agreement is solely for the benefit of the
Creditors and their respective successors, participants and assigns, and no
other person shall have any right, benefit, priority or interest under, or
because of the existence of, this Subordination Agreement.

          4.11 DISCLOSURES, NON-RELIANCE. Each Creditor has the means to, and
shall in the future remain, fully informed as to the financial condition and
other affairs of Debtor and no Creditor shall have any obligation or duty to
disclose any such information to any other Creditor. Except as expressly set
forth in this Subordination Agreement, the parties hereto have not otherwise
made to each other nor do they hereby make to each other any warranties, express
or implied, nor do they assume any liability to each other with respect to: (a)
the enforceability, validity, value or collectability of any of the Junior Debt
or the Senior Debt or any collateral or guarantee which may have been granted to
any of them in connection therewith, (b) Debtor's title to or right to any of
its assets and properties or (c) any other matter except as expressly set forth
in this Subordination Agreement.

          4.12 TERM. This Subordination Agreement is a continuing agreement and
shall remain in full force and effect until the final payment and satisfaction
in full of all Senior Debt and the termination of the financing arrangements
between Senior Creditors and Debtor.

          IN WITNESS WHEREOF, the parties have caused this Subordination
Agreement to be duly executed as of the day and year first above written.

                              CONGRESS FINANCIAL CORPORATION,
                                  for itself and as Agent

                              By: /s/ Thomas Martin
                                 -------------------

                             Title: /s/ Assistant Vice President
                                    -----------------------------

[SIGNATURES CONTINUED ON NEXT PAGE]

                                      -7-
<PAGE>

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

                              THE CIT GROUP/BUSINESS CREDIT, INC.,
                                 for itself and as Co-Agent

                               By: /s/ Christopher Hill
                                   ---------------------

                               Title: /s/ Assistant Vice President
                                      ----------------------------

                               THE RENCO GROUP, INC.

                               By: /s/ Roger Fay
                                   ---------------
                               Title: /s/ Vice President
                                     --------------------

         The undersigned hereby acknowledges and agrees to the foregoing terms
and provisions. By its signature below, the undersigned agrees that it will,
together with its successors and assigns, be bound by the provisions hereof.

         The undersigned acknowledges and agrees that: (i) although it may sign
this Subordination Agreement, it is not a party hereto and does not and will not
receive any right, benefit, priority or interest under or because of the
existence of the foregoing Subordination Agreement, (ii) in the event of a
breach by either of the undersigned or Junior Creditor of any of the terms and
provisions contained in the foregoing Subordination Agreement, such a breach
shall constitute an "Event of Default" as defined in and under the Senior
Creditor Agreements and (iii) it will execute and deliver such additional
documents and take such additional action as may be necessary or desirable in
the opinion of any Creditor to effectuate the provisions and purposes of the
foregoing Subordination Agreement.

                               LODESTAR ENERGY, INC.

                               By: /s/ Roger Fay
                                  ---------------

                               Title: /s/ Vice President
                                     --------------------

                                      -8-<PAGE>

                                                                   EXHIBIT 10.15

THE RENCO GROUP, INC.
30 Rockefeller Plaza
New York, New York 10112

                                         November 15, 1999

Congress Financial Corporation,
  as Agent
1133 Avenue of the Americas
New York, New York 10036

              Re: Subordinated Loans in the Maximum Amount of $6,000,000
                  ------------------------------------------------------
Gentlemen:

         Lodestar Energy, Inc., a Delaware corporation ("Borrower"), has entered
into financing arrangements with Congress Financial Corporation, a Delaware
corporation in its capacity as Agent pursuant to the Loan Agreement (as
hereinafter defined) acting for and on behalf of the financial institutions
which are from time to time parties thereto as lenders (in such capacity,
"Agent"), The CIT Group/Business Credit, Inc. in its capacity as co-agent for
the financial institutions which are from time to time parties thereto as
lenders ("Co-Agent") and the financial institutions which are parties to the
Loan Agreement as lenders (individually, a "Lender", and collectively,
"Lenders") pursuant to which Agent and Lenders may make loans and advances and
provide other financial accommodations to Borrower as set forth in the Amended
and Restated Loan and Security Agreement, dated May 15, 1998, by and among
Borrower, Lodestar Holdings, Inc., a Delaware corporation ("Guarantor"), Agent,
Co-Agent and Lenders, as amended pursuant to Amendment No. 1 to Amended and
Restated Loan and Security Agreement, dated October 22, 1998, Amendment No. 2 to
Amended and Restated Loan and Security Agreement, dated December 21, 1998,
Amendment No. 3 to Amended and Restated Loan and Security Agreement, dated
January 15, 1999, Amendment No. 4 to Amended and Restated Loan and Security
Agreement, dated April 30, 1999, Amendment No. 5 to Amended and Restated Loan
and Security Agreement, dated July 16, 1999, and Amendment No. 6 to Amended and
Restated Loan and Security Agreement, dated of even date herewith (as the same
now exists or may hereafter be amended, modified, supplemented, extended,
renewed, restated or replaced, the "Loan Agreement"), and other agreements,
documents and instruments referred to therein or at any time executed and/or
delivered in connection therewith or related thereto, including, but not limited
to, this letter agreement (all of the foregoing, together with the Loan
Agreement, as the same now exist or may hereafter be amended, modified,
supplemented, extended, renewed, restated or replaced, being collectively
referred to herein as the "Financing Agreements"). All capitalized terms used
herein. unless otherwise defined herein, shall have the meanings given to such
terms in the Loan Agreement.

         In order to induce Agent and Lenders to enter into the financing
arrangements as provided in the Loan Agreement and the other Financing
Agreements and in consideration of the Loans and Letter of Credit Accommodations
to be provided by Agent and Lenders to Borrower pursuant thereto, the parties
hereto agree as follows:

         1. Subject to Section 5 below, at any time and from time to time within
ten (10) Business Days of any request of Agent (which request shall specify the
basis therefor under Section 5 below), Renco Group shall make loans to Borrower
in cash or other immediately available funds which loans shall be subordinated
loans in accordance with the Subordination Agreement, dated of even date
herewith, by and among Renco Group, Agent and Co-Agent (the "Renco Subordination
Agreement") in such amounts as Agent shall specify in any such request;
PROVIDED, THAT,

                  (a) the total amount of such subordinated loans by Renco
Group to Borrower shall not exceed $6,000,000 at any time outstanding,

                  (b) in the event that the basis for the request by Agent is
the condition set forth in Section 5(a), then the amount of such loans requested
by Agent may be up to: (i) the amount equal to the difference between $6,000,000
and the lowest amount of the Excess Revolving Credit Availability at any time
during the ten (10) day period referred to in Section 5(a), plus (ii)
$1,000,000,

                  (c) in the event that the basis for the request by Agent is
the condition set forth in Section 5(b) hereof, then the amount of such loans
requested by Agent may be up to $6,000,000,

                                       -1-

<PAGE>

                  (d) in the event that the basis for the request by Agent is an
Event of Default arising from the failure of Borrower to have Consolidated Net
Worth in an amount required under Section 7.10(b) of the Loan Agreement or the
failure to have cumulative EBITDA in the amount required under Section 7.25 of
the Loan Agreement, then the amount of such loans requested by Agent may be up
to: (i) the amount equal to the greater of: (A) the difference between the
amount of the Consolidated Net Worth which Borrower is required to have under
Section 7.10(b) of the Loan Agreement and the Consolidated Net Worth of Borrower
which is the basis for such Event of Default, or (B) the difference between the
cumulative EBITDA which Borrower is required to have under Section 7.25 of the
Loan Agreement and the cumulative EBITDA of Borrower which is the basis for such
Event of Default, PLUS (ii) $1,000,000,

                  (e) in the event that the basis for the request by Agent is
that any other Event of Default has occurred, then the amount of such loans
shall be equal to such amount (subject to clause (a) above) as Agent may
determine, and

                  (f) in the event that, at the time any such payment is
requested, Borrower is a debtor in any case under the U.S. Bankruptcy Code or
any similar proceeding under any state insolvency law, such payments by Renco
Group shall be made directly by Renco Group to Agent for the benefit of Lenders
to be applied to payment of the Obligations and shall not be deemed to
constitute a loan by Renco Group to Borrower (without limiting the rights of
Renco Group to reimbursement or subrogation subject to Section 6 hereof).

         2. Borrower and Renco Group each agree that the proceeds of any or all
such subordinated loans or other payments by Renco Group shall be used by
Borrower on the date of such payment by Renco Group to Borrower to make a
mandatory prepayment in respect of the Loans. Notwithstanding anything to the
contrary contained herein or in the other Financing Agreements, at any time on
or after an Event of Default, all amounts received by Agent pursuant hereto
shall be applied to the Obligations as specified by Section 4 below.

         3. (a) The Indebtedness of Borrower arising pursuant to the
subordinated loans by Renco Group to Borrower pursuant to the terms hereof shall
be subject to, and subordinate in right of payment to, the final payment and
satisfaction in full of all of the Obligations as set forth in the Renco
Subordination Agreement. As set forth therein, Borrower may make payments in
respect of the subordinated loans so long as the following conditions are
satisfied as reasonably determined by Agent: (i) as of the date of such payment
and after giving effect thereto, Excess Revolving Credit Availability shall be
not less than $12,000,000 and for each of the thirty (30) consecutive days
immediately prior to any such payment, Excess Revolving Credit Availability
shall not have been less than $12,000,000, and (ii) as of the date of any such
payment and after giving effect thereto, no Event of Default or act, condition
or event which with notice of passage of time or both would constitute an Event
of Default shall exist or have occurred and be continuing.

             (b) Borrower may, at any time, request that Agent agree to allow
payments to Renco Group in respect of the Indebtedness of Borrower to Renco
Group arising pursuant to such subordinated loans (other than as expressly
permitted in Section 3(a) above). Agent may, but shall not be obligated to agree
to allow such payments, subject to such terms and conditions as Agent may elect
to establish with respect thereto. The foregoing shall not be construed to
require Agent or Lenders to so agree and Agent and Lenders may withhold such
agreement in its and their discretion.

             (c) In the event that any amounts are repaid to Renco Group under
this Section 3, then the amount of the loans available for request by Agent
hereunder shall increase by the amount of any such repayment(s), subject to the
limitation in Section 1(a) hereof.

         4. Borrower hereby irrevocably authorizes and directs that Renco Group
make all such payments in respect of the subordinated loans provided for
hereunder directly to Agent for the ratable benefit of Lenders and for
application to the Obligations arising in connection with the Revolving Credit
Facility.

         5. The obligations of Renco Group to make the subordinated loans to
Borrower pursuant to Section 1 above shall be continuing from the date hereof
through and including the later of June 1, 2001 or the date that no Event of
Default, or act, condition or event which with notice or passage of time or both
would constitute an Event of Default shall exist or have occurred and be
continuing if such Event of Default or act, condition or event shall have first
occurred prior to June 1, 2001. Agent shall have the right to request such
subordinated loans and, upon such request, Renco Group shall make such
subordinated loans at any time and from time to time only if any of the
following occur: (a) the Excess Revolving Credit Availability shall be less than

                                      -2-
<PAGE>

$6,000,000 for any period of ten (10) consecutive Business Days, (b) at any time
there is no Excess Revolving Credit Availability, or (c) any Event of Default,
or act, condition or event which with notice or passage of time or both would
constitute an Event of Default shall exist or have occurred and be continuing.

         6. Except as otherwise provided herein and in the Renco Subordination
Agreement, Renco Group hereby irrevocably and unconditionally waives all
statutory, contractual, common law, equitable and other claims against Borrower,
or any of the Collateral for subrogation, reimbursement, exoneration,
contribution, indemnification or other recourse in respect of sums paid or
payable to Lenders by Renco Group hereunder until all of the Obligations are
paid and satisfied in full.

         7. Renco Group and Borrower represent and warrant to Agent and Lenders
that: (a) the execution, delivery and performance of this letter agreement is
within the corporate powers of Renco Group and Borrower, has been duly
authorized by all necessary corporate action of Renco Group and Borrower, and
does not contravene any law, any provisions of the certificate of incorporation
or the by-laws of Renco Group and Borrower or any agreement to which either of
Renco Group or Borrower is a party or by which it or its properties are bound,
and (b) this letter agreement constitutes the legal, valid and binding
obligations of Renco Group and Borrower, enforceable in accordance with its
terms.

         8. Notice of acceptance hereof, the making of Loans and providing
Letter of Credit Accommodations to, and the incurring of any expenses by or in
respect of, Borrower and Guarantor by Lender, and all other notices to which
Renco Group and Borrower are or may be entitled are hereby waived (except as to
Borrower as expressly provided for herein or in the Financing Agreements or the
Renco Subordination Agreement). Renco Group waives notice of, and hereby
consents to (a) any amendment, modification, supplement, renewal, restatement or
extensions of time of payment of or increase or decrease in the amount of any of
the Obligations or to the Loan Agreement or any of the other Financing
Agreements or any Collateral, (b) the taking, exchange, surrender and releasing
of Collateral or guarantees now or at any time held by or available to Lender
for the Obligations or any other person at any time liable for or in respect of
the Obligations, (c) the exercise of, or refraining from the exercise of any
rights against Borrower, Guarantor or any other obligor or any Collateral, (d)
the settlement, compromise or release of, or the waiver of any default with
respect to, any of the Lenders, and/or (e) any Obligations incurred, or grant of
a security interest to secure Obligations, under Section 364 of the U.S.
Bankruptcy Code to Borrower, as debtor-in-possession. Any of the foregoing shall
not, in any manner, affect the terms hereof or impair the obligations of Renco
Group hereunder. All of the Obligations shall be deemed to have been made or
incurred in reliance upon this letter agreement.

         9. This letter agreement shall be applicable both before and after the
filing of any petition by or against Borrower under the U.S. Bankruptcy Code and
all converted or succeeding cases in respect thereof, and all references herein
to Borrower shall be deemed to apply to a trustee for Borrower and Borrower as a
debtor-in-possession. The rights of Agent and Lenders and the obligations of
Renco Group hereunder shall continue after the filing thereof on the same basis
as prior to the date of the petition.

         10. The rights and obligations hereunder of each of the parties hereto
shall be governed by and interpreted and determined in accordance within the
laws of the State of New York (without giving effect to principles of conflict
of law).

         11. This letter agreement shall be binding upon and inure to the
benefit of each of the parties hereto and their respective successors and
assigns. All references to any party hereto shall be deemed to include such
party and its successors and assigns.

         12. This letter agreement may be executed in any number of
counterparts, but all of such counterparts shall together constitute but one and
the same agreement. Making proof of this agreement shall not be necessary to
produce or to account for more than one counterpart thereof signed by each of
the parties hereto.

         Upon the execution of this letter agreement by Agent, this letter shall
become a binding agreement by and among Renco Group, Borrower and Agent.

                                    Very truly yours,

                                    THE RENCO GROUP, INC.

                                    By:  /s/ Roger Fay
                                        ---------------

                                      -3-

<PAGE>
                                    Title:  /s/ Vice President
                                           --------------------

AGREED:
CONGRESS FINANCIAL CORPORATION,
as Agent

By: /s/ Thomas Martin
    ------------------
Title: /s/ Assistant Vice President
       ----------------------------

THE CIT GROUP/BUSINESS CREDIT, INC.,
as Co-Agent

By: /s/ Christopher Hill
    ---------------------
Title: /s/ Assistant Vice President
       -----------------------------
[SIGNATURES CONTINUED ON NEXT PAGE]

[SIGNATURES CONTINUED FROM PREVIOUS PAGE]

LODESTAR ENERGY, INC.

By: /s/ Roger Fay
    --------------
Title: /s/ Vice President
       -------------------

LODESTAR HOLDINGS, INC.

By: /s/ Roger Fay
    --------------
Title: /s/ Vice President
       -------------------

                                      -4-

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