Steel Products
RG Steel Creditors Withdraw Request to Sue Renco Group Founder
Written by Sandy Williams
February 4, 2013
Written by: Sandy Williams
Ira Rennert has been given a reprieve from a potential suit from RG Steel Creditors—at least for now. After seeking court permission to sue the Renco Group founder for deliberately delaying the bankruptcy filing of RG Steel in order to protect his own financial interests, the Official Committee of Unsecured Creditors withdrew their request without explanation on Friday. The request was done “without prejudice,” meaning that it could be brought up again.
Lack of funding may be a possible reason for the withdrawal. The Committee had planned to pay for the lawsuit with money RG Steel seeks to recover from companies paid shortly before the bankruptcy. Cerberus Capital Management asked the court not to approve such funding until Cerberus is repaid in full for loans it extended to RG steel in exchange for partial ownership. A deal the Committee alleges Rennert made with Cerberus in an attempt to avoid potential liability for RG Steel’s underfunded pension plan. (Source: Baltimore Sun)
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
ISM: Manufacturing growth down again in April
Activity had trended up for most of Q1
EU HR prices gain ground on US, Asian HR still well behind
Section 232 returned on March 12, and since then, the price gap between offshore and US hot band has tightened.
SMU Community Chat replay now available
The latest SMU Community Chat webinar reply is now available on our website to all members. After logging in at steelmarketupdate.com, visit the community tab and look under the “previous webinars” section of the dropdown menu. All past Community Chat webinars are also available under that selection. If you need help accessing the webinar replay, or if your company […]
SSAB announces $74M expansion in Alabama
The project will expand heat treat capacity at its Axis, Alabama plant
Service centers: Mill orders retreat in March
SMU’s Mill Order Index declined in March after repeated gains at the start of the year, according to our latest service center inventories data.