Hilco Buys RG Steel Mill, Says Will Seek Operator
WARREN, Ohio -- A Chicago area firm that specializes in marketing industrial properties has purchased RG Steel's Warren steel making assets, pledging it will do "everything possible" to find a buyer or operator for the shuttered hot mill.
Hilco Trading LLC of Northbrook, Ill. announced over the weekend that it has purchased the assets of RG Steel Warren through a newly formed entity, Hilco Warren LLC.
Hilco Trading describes itself as “privately-held, diversified financial services firm whose principal competency is understanding and maximizing the value of business assets. “
In Hilco’s announcement of the purchase, Gary Epstein, chief marketing officer, said his company is planning an aggressive push to seek buyers for the facility as a whole or in part. "Hilco will run a sale process that will include continuing to market the steel making complex, vetting and evaluating all offers in a private treaty sale," he said.
The former steel mill, which is over 110 years old, was sold for $4 million last September to BDM Warren Steel Holdings LLC in U.S. Bankruptcy Court in Delaware. All steel- making there was halted in May 2012 by its previous owner, RG Steel.
"Our goal is to do everything possible to find a purchaser for the facility that can operate the hot mill facility as a going concern," said Epstein.
He clarified that there may be “some precision demolition work completed at the cold mill site [but] Hilco remains focused on finding a buyer, making every reasonable effort to get the hot steel making operation up and running again. “
Court documents filed following the bankruptcy indicate that BDM was committed to finding a steel operator to run the facility and included a moratorium on the removal or sale of assets at the 1,200 acre site for nine months after BDM's acquisition.
Hilco said in its announcement that it “intends to fulfill this obligation and will aggressively seek a going concern buyer for the hot mill. BDM committed substantial capital to maintain the facility throughout the winter while continuing to market the complex, making every effort toward getting it operational on some scale.”
Hilco says its “500 professionals operating on five continents [help] companies and their professional advisers assess asset value, maximize value for said assets through asset monetization solutions, and enhance value through advisory and consulting solutions.
BDM Warren Steel Holdings LLC has three principals. They include: Charles J. Betters who operates several companies including Beaver Valley Slag and Bet-Tech Construction; Stephen M. Muck of Grouse Ridge Capital LLC; and the DiGeronimo Family, owners of Independence Excavating. Independence Excavating.
RG Steel's closing of the facility brought an end to 110 years of steelmaking at the site, which began in 1902 as Republic Steel Corp. The company was then purchased by Jones & Laughlin Steel Corp., which subsequently became LTV Steel. After LTV declared bankruptcy during the late 1980s, the company was reorganized as WCI Steel and purchased by the Renco Group. WCI filed bankruptcy in 2002, and the mill was sold in 2008 to Severstal SA, one of the largest steel and mining companies in Russia. In 2010, Severstal sold the mill to RG Steel. RG Steel filed bankruptcy in May 2012, and BDM purchased the facility in August of last year.
SOURCE: Hilco Trading LLC
Published by The Business Journal, Youngstown, Ohio.
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