May 31, · RG Steel LLC filed for Chapter 11 days after admitting it was "confronted with an immediate, unexpected liquidity crisis." DOW JONES, A NEWS CORP COMPANY News Corp is a Author: Melanie Cohen. Jun 01, · RG Steel LLC, the fourth-biggest U.S. flat-rolled steelmaker, sought bankruptcy protection with a goal of selling the company in less than two months. RG Steel, based in Sparrows Point, Maryland. The settlement, which provides up to $1, for each union worker displaced by the mill’s closing, closes a case set in motion when RG Steel filed for bankruptcy on May 31, Under the terms of the agreement, RG parent company The Renco Group and insurance companies covering RG executives will pay $ million to various unsecured creditors, including the United Steelworkers (USW) union.
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The former Wheeling-Pitt plant in Yorkville is now the Yorkville Energy Services Terminal, a facility that can be used as a service hub for the Marcellus and Utica shale drilling industry. Esmark Inc. Ohio Gov. Bouchard at the plant in October to announce the acquisition and plans for a restart. But Esmark never got anything going in Yorkville, as the company eventually decided on the services terminal project. As for the remaining former Wheeling-Pitt facilities, the rusting structures of the former Steubenville plant are now gone, thanks to the demolition efforts of Wheeling-based Strauss Industries.
Wheeling businessmen Quay Mull and Joseph N. Debtors and creditors have been opting for structured dismissal, especially in cases where there are few assets remaining.
But the rise of the practice suggests that the bankruptcy code is no longer meeting its goals of allowing companies to rehabilitate themselves, Harner said.
In many cases, companies opt for rescue financing instead of seeking protection from the court. If they fail anyway, they are further in debt than before, she said. That scenario is similar to allegations brought by the creditors committee in , when it asked the court to allow it to sue Renco and its billionaire founder, Ira Rennert.
Renco, a privately owned New York company founded by Rennert in , buys struggling companies and resells them, but it also continues to run a number of businesses in mining, metal fabrication and defense equipment.
Creditors alleged that the firm's distressed finances were apparent quickly, but Rennert delayed filing for bankruptcy to protect Renco and himself, placing the company in further debt and other creditors at a disadvantage. Renco argued that Rennert was not liable, given the way the firms were structured, and called the claims generally "incoherent and internally inconsistent.
Recipients of the settlement money must cash their checks within 60 days. Jury said the union is notifying employees. Two companies filed objections to the settlement.
In response, U. Bankruptcy Judge Kevin J. Carey amended the deal Thursday, ordering three law firms to further reduce their fees and specifically directing some money to the objecting companies. A spokesmen for Renco did not respond to a request for comment Thursday evening. Cerberus declined to comment. While the dismissal bars most future claims against them, litigation related to the bankruptcy is not over. That suit is scheduled to go to trial in December. Skip to content. The Evening Sun Newsletter.