Steel Mills

Severstal & RG Steel Litigation to End
Written by Sandy Williams
June 23, 2014
Severstal has agreed to pay $30 million to RG Steel in exchange for all of RG Steel Wheeling’s 50 percent interest in Mountain State Carbon LLC (MSC).
The settlement will “release, acquit, and forever discharge” Severstal and RG Steel from any further claims or suits by the other, according to the docket filed in the US Bankruptcy Court for the District of Delaware. The deal will end years of Severstal NA’s legal entanglement with bankrupt RG Steel.
The companies have until July 8 to file any objections to the settlement before the final hearing on July 15.
In March 2011 RG Steel purchased Severstal Sparrows Point, Warren and Wheeling. Severstal Wheeling became RG Steel Wheeling. (Note: Wheeling was originally called Wheeling Pittsburgh Steel. Wheeling Pittsburgh was sold to Esmark which in turn sold it to Severstal NA in 2008.)
The Wheeling acquisition included a 50 percent membership interest in MSC. RG Steel gave a promissory note of $100 million to Severstal US Holdings II, LLC for the acquisition using its new interest in MSC as collateral. Severstal NA Carbon retained the other 50 percent of MSC.
Later that year, RG Steel sought a purchase price adjustment which was contested by Severstal US Holdings II. RG Steel filed for bankruptcy in May of 2012 and all three mills were shuttered and sold off in pieces or scrapped. Several more proceedings were initiated by both parties—Severstal to recover debts owed and interest in MSC and by RG Steel to avoid payments and recover transfers. The latest settlement will put an end to the litigation.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

Steel Summit: Schneider sees SDI ‘on the edge of a very good run’
Steel Dynamics Inc. (SDI) President and Chief Operating Officer, Barry Schneider, remains bullish about the Fort Wayne, Ind.-based steelmaker’s position in the current market.

Steel Summit: Burritt says USS and Nippon are fast-tracking modern steelmaking
U.S. Steel President and CEO David Burritt told audiences at SMU's Steel Summit 2025 that the iconic American steelmaker’s partnership with Nippon Steel is fast-tracking smarter steel production.

Nucor moves to stop HRC price slide with $10/ton hike
Nucor is attempting to halt the decline in hot-rolled coil prices with the announcement of a $10-per-short-ton increase in its weekly consumer spot price on Monday.

Explosion rocks ArcelorMittal’s DR plant in Mexico
ArcelorMittal reported a "strong" explosion at the direct reduction part of its massive Lazaro Cardenas mill in Mexico.

SDI to acquire remaining stake in New Process Steel
Steel Dynamics Inc. (SDI) announced that it has agreed to acquire the remaining 55% equity interest in New Process Steel.