RG Steel, Creditors Urged To Agree On Sale Process

Wed, 06/20/2012 - 2:16pm
Randall Chase, AP Business Writer

WILMINGTON, Del. (AP) — The judge presiding over the bankruptcy of RG Steel LLC is urging the company and its creditors to try to agree on a sale process of the steelmaker's assets.

RG Steel, the nation's fourth-largest flat-rolled steel manufacturer, sought bankruptcy protection last month, citing liquidity issues attributed to low steel prices and high raw material costs.

RG Steel's bankruptcy financing agreement with secured lenders requires a sale of its steel mill in Sparrows Point, Md., by July 27.

But unsecured creditors fear the process is being rushed and asked that a Thursday hearing to approve proposed bid procedures be postponed. RG Steel opposed that request.

The judge on Wednesday urged the parties to try to resolve their differences but said he would hold the hearing on Thursday if need be.


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