Reuters: Bankruptcy News: UPDATE 1-Bankrupt RG Steel delays auction of two plants

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UPDATE 1-Bankrupt RG Steel delays auction of two plants Jul 31st 2012, 21:23 Tue Jul 31, 2012 5:23pm EDT * Sale of plants in Baltimore and Warren, Ohio, postponed * Added time sought to find "stalking horse" bidder * Plant in Wheeling, West Virginia, being sold on Tuesday July 31 (Reuters) - An auction to sell two steel plants under RG Steel's Chapter 11 bankruptcy proceedings has been delayed, according to a document filed on Tuesday in Delaware's bankruptcy court. The auction of the company's Sparrows Point plant in Baltimore, and a plant in Warren, Ohio, were postponed to Aug. 7 at 10 a.m. (1400 GMT) The auction will be held at the New York office of the company's law firm, Willkie Farr & Gallagher. The court filing said that the sale of a third plant in Wheeling, West Virginia, was being held on Tuesday as originally scheduled. The filing did not say why the auction sale of the two plants was postponed. An attorney for the company and the company's investment banker did not immediately return a call for comment. The Baltimore Sun reported that United States Steelworkers Local 9477 members in Baltimore were told the Sparrows Point auction has been delayed as RG Steel seeks an additional week to find a lead, or "stalking horse," bidder for the property. Last week, the Sun reported that -- in addition to a number of scrap dealers -- three bidders have emerged as potential operators of all or part of the Sparrows Point steel mill. They were Brazilian steelmaker CSN, Optima Fund Management/Metinvest, a Ukraine-based company, and U.S. steelmaker Nucor Inc. A Nucor spokeswoman declined to comment to Reuters on Tuesday. There was no immediate comment from CSN or Optima. RG Steel LLC filed for Chapter 11 bankruptcy protection on May 31, saying it could not overcome the deterioration of the steel market and would sell off the three plants it bought last year from Russian steelmaker Severstal for $1.2 billion. Link this Share this Digg this Email Reprints

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