Reuters: Bankruptcy News: RG Steel finds buyers for some of its steel plants

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RG Steel finds buyers for some of its steel plants Aug 2nd 2012, 14:31 Thu Aug 2, 2012 10:31am EDT Aug 2 (Reuters) - RG Steel LLC, which filed for bankruptcy protection in May, has found buyers for some of its assets as the steel maker looks to restructure its debt and work its way out of bankruptcy. In an auctioneer's report, the company's steel plant in Wheeling, West Virginia was sold to Nucor Corp for $7 million while its Martins Ferry mill in Ohio was sold for $2 million to Quay Mull and Joseph Gompers. Mull has been identified as a businessman based in Ohio according to local media reports. RG Steel also said it has sold its equity rights in Ohio Coatings Co to Esmark Steel Group for $1.5 million. Earlier this week, the auction of the company's Sparrows Point plant in Baltimore and a plant in Warren, Ohio, were postponed to Aug. 7, as RG Steel seeks an additional week to find a lead, or "stalking horse," bidder for the property. All the winning bids are subject to court approval. The United States on behalf of the Environmental Protection Agency on Wednesday filed its objection to the company's motion to sell virtually all its assets. In his filing, Ignacia Moreno, Assistant Attorney General of the Environment and Natural Resources Division, said steel plants are regulated under environmental laws and RG Steel's plants have pending environmental actions against them. The EPA said it is not aware of which properties will be part of the upcoming sale hearing and needs more time to identify the financial ability of the buyers to comply with environmental laws. RG Steel filed for Chapter 11 bankruptcy protection on May 31, saying it could not overcome the deterioration of the steel market. The case is In re: WP Steel Venture LLC, U.S. Bankruptcy Court for the District of Delaware, No. 12-11661. Link this Share this Digg this Email Reprints

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