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                                                                    Exhibit 99.1

                                  NEWS RELEASE

                   COMPANY FILES AMENDED RESTRUCTURING PLANS
               LENDERS CONFIRM THEIR SUPPORT FOR PHILIP SERVICES
              UNSECURED CREDITORS COMMITTEE SUPPORTS THE U.S. PLAN

Hamilton, Ontario - September 20, 1999:  Philip Services Corp. (TSE/ME: PHV)
today announced that the Company has filed an Amended and Restated Plan of
Compromise and Arrangement in Canada (the "Canadian Plan") under the Companies'
Creditors Arrangement Act ("CCAA"), and an Amended Joint Plan of Reorganization
("the U.S. Plan") and a Disclosure Statement under Chapter 11 of the U. S.
Bankruptcy Code.

The amended Plans provide that the claims of Canadian creditors against Philip
Services Corp. will be dealt with in Canada under the CCAA proceedings.  The
amended Canadian Plan also provides that in the event that certain conditions
are not satisfied or Canadian unsecured creditors vote to reject the Canadian
Plan, the Company can implement an alternative means to complete its
restructuring.  Under the alternative structure, the restructuring of Philip
Services Corp. and its Canadian subsidiaries would be accomplished through the
transfer of their businesses as a going concern to one or more direct or
indirect subsidiaries of Philip Services (Delaware), Inc.

Philip's lending syndicate have confirmed their support of the Company's
amended Restructuring Plans.  In addition, the official committee of unsecured
creditors appointed under the Chapter 11 proceedings, have confirmed their
support of Philip's U.S. Plan.  The unsecured creditor committee, which
represents the Company's major unsecured creditors, has urged holders of
unsecured claims to vote in favour of the U.S. Plan.  This is a major step
towards the successful and timely completion of Philip's financial
restructuring.

The Steering Committee of Philip's Syndicate Lenders made the following
statement regarding their ongoing support for Philip Services and the Company's
financial restructuring:

"Our desire is to recover the best return on our investment through a
strengthening of the going concern value of the Company.  This is a long-term,
not a short-term view.  We continue to believe that a restructured Philip
offers the best opportunity to achieve our goal.  This is reflected in the fact
that the lenders have given their full support to the appointment of Anthony
Fernandes as CEO of Philip Services.  We view this as a very positive step for
Philip."

"We want the business to be preserved as a going concern.  We will continue to
work with Philip so that through the Restructuring Plan, or through other
rights available to the lenders, the restructuring of the business can proceed
in a timely manner for the benefit of Philip's employees, its clients and
others, including the lenders."

"We have the full support of our secured lenders for our financial
restructuring and the long term value of our business," said Robert Knauss,
Chairman of Philip's Board of Directors.  "We have addressed the concerns
raised by the Court in the CCAA proceedings and we are well underway with
negotiations to complete our financial reorganization."




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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-products
management and industrial outsourcing services, to all major industry sectors.

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Contact: Lynda Kuhn
         Vice President Corporate Communications & Investor Relations
         (905) 540-6658



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