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Breaking News: Not Looking Good for RG's Warren Mill
YOUNGSTOWN, Ohio – No steel companies placed a bid on the assets of bankrupt RG Steel’s Warren plant, according to a story posted this morning by the Baltimore Brew website.
Neither did RG’s Sparrows Point mill receive a bid from a steel operator. Instead, a bid of $72 million was offered by Hilco Industrial, a Michigan company that says it provides “industrial capital asset acquisition and disposition services.”
The auctions were conducted Tuesday at the Manhattan headquarters of RG Steel’s lead attorney.
A report by the Baltimore Sun said the assets auction for the Warren plant was continuing into Tuesday evening. No official update has been posted by RG Steel or the website that posts all bankruptcy court documents.
Darryl Parker, president of Local 1375 of the United Steelworkers, which represents 1,000 idled workers at the Warren plant, was said to be in a meeting this morning and could not be reached. A woman who answered the phone at the union hall on Park Avenue in Warren relayed his official response: “No comment.”
The Baltimore Brew quotes an email from the union president at Sparrows Point that states the auction for RG's Maryland facility “did not go as planned nor as we expected.”
The Sparrows Point plant reportedly has a book value of more than $1 billion, much more than the liquidator’s $72 million bid.
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Copyright 2012 The Business Journal, Youngstown, Ohio.