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Court chips away at RG

September 18, 2012
From staff reports , The Herald-Star

STEUBENVILLE - U.S. Bankruptcy Judge Kevin Carey continues to chip away at issues and concerns stemming from RG Steel's liquidation.

Last week, U.S. Bankruptcy Court in Delaware signed off on the $72 million sale of the now-defunct company's Sparrows Point complex to Hilco Industrial, a Chicago-based liquidator, and Environmental Liability Transfer, a St. Louis redeveloper. An ELT spokesman has said they are looking for operators for all or part of the mill, which has state-of-the-art cold-rolling equipment as well as rail and ship access.

Slated to be addressed today is the status of Mountain State Carbon's self-funded insurance program and what should be done in the near future to address concern that it is underfunded. With RG Steel no longer paying claims, the court will have to decide whether collateral that RG Steel had posted to cover such shortfalls should be transferred to the state of West Virginia.

Meanwhile, attorneys are preparing for an anticipated two days of legal wrangling over details of the still-to-be-finalized acquisition of the Yorkville plant and Ohio Coatings by Esmark Steel. The approvals have been delayed by RG Steel's alleged failure to properly address soil contamination problems at its Yorkville plant.

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