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                                                                    EXHIBIT 99.2

                                  NEWS RELEASE

           U.S. COURT GRANTS PHILIP FIRST DAY ORDERS UNDER CHAPTER 11

     Hamilton, Ontario -- June 28, 1999 -- Philip Services Corp. (TSE/ME: PHV)
today announced that it has obtained First Day Orders from the U.S. Bankruptcy
Court for the District of Delaware under Chapter 11. The orders authorize the
Company's subsidiaries in the United States to continue to meet their ongoing
financial obligations with respect to employee salaries and benefits, as well as
pre-filing obligations to ongoing trade suppliers based on the continuance of
normal trade credit terms. All post-filing obligations to trade suppliers will
be paid in the normal course of business. Philip has already obtained similar
relief under an initial order from the Ontario Superior Court of Justice, which
governs the Company's Canadian subsidiaries.

     The Delaware Court has approved an order granting Philip the authority to
continue to manage its affairs on a normal course basis throughout the
restructuring process. In addition, the Court has confirmed the Company's access
to proceeds remaining from the previous sale of non-core assets of over US$40
million. Philip has also negotiated US$100 million in debtor-in-possession
("DIP") financing, which has been co-arranged by Bankers Trust and the Canadian
Imperial Bank of Commerce and will support the Company's working capital
requirements during the restructuring process. Philip has limited access to the
DIP financing until such time as the Company utilizes all cash proceeds
available from the sale of assets.

     Philip also requested and the Court approved the treatment of Philip's
reorganization on an expedited basis, and therefore has scheduled a confirmation
hearing for October 13, 1999 to confirm the Company's plan of reorganization.
The Company believes that this is achievable based on its significant progress
in negotiating approvals for its plan of reorganization prior to filing.

     "These First Day Orders are key to preserving the ongoing continuity of our
businesses throughout the United States, which is our primary market and base of
operations," said Allen Fracassi, interim Chief Executive Officer. "The Court
has recognized the importance of ensuring Philip will continue to meet its
obligations to employees, ongoing trade suppliers and clients while we complete
our reorganization. We are moving ahead with our plan to emerge quickly from our
reorganization, regain financial stability and build our businesses."

     Philip Services is an integrated metals recovery and industrial services
company with operations throughout the United States, Canada and Europe. Philip
provides diversified metals services, together with by-product management and
industrial outsourcing services, to all major industry sectors.

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CONTACT:         LYNDA KUHN
                 VP Corporate Communications and Investor Relations
                 (905) 540-6788/6789
MEDIA:           (905) 540-6658