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No Word Yet on Auction of RG Steel's Warren Mill
YOUNGSTOWN, Ohio -- Information is scarce this morning as reporters scramble to learn the results of Tuesday’s auction of RG Steel’s Warren and Maryland steel mills.
The auction took place in the Manhattan offices of RG Steel’s lead bankruptcy attorneys. The Baltimore Sun quotes a source in reporting the auction for the Sparrows Point mill near Baltimore was completed Tuesday but as of 7:30 Tuesday night, the auction was still underway for RG’s Warren steel mill.
One thousand hourly workers are furloughed in Warren; 1,600 in Maryland.
Among the registered bidders for both steel mills are companies that specialize in dismantling industrial structures and selling the scrap.
Last week RG accepted steelmaker Esmark’s bid of $4.75 million for RG’s Yorkville steel mill even though Esmark was outbid by Frontier Industrial Corp., a Buffalo company that specializes in demolishing industrial structures and selling the scrap. RG states in court documents that Esmark’s bid has more value because the steelmaker agreed “to offer employment to at least 230 employees of the Yorkville facilities.” Such an agreement reduced RG’s unemployment liabilities by an amount that exceeded “the cash consideration between the bid submitted by Esmark and Frontier,” the company said.
Frontier Industrial Corp. was, however, the high bidder for RG’s Mingo Junction steel mill, with a bid of $20 million.
Also last week, RG’s Martins Ferry plant was sold for $2 million to a Wheeling businessman and attorney.
These asset sales will be reviewed during a hearing today in U.S. Bankruptcy Court in Delaware. Numerous objections have been filed by creditors and environmental agencies.
An Aug. 15 hearing date is scheduled to review the results of the auctions for RG’s Warren and Maryland plants. Keep checking BusinessJournalDaily.com for updated reports.
UPDATE 12:10 p.m.: Breaking News: RG Warren Mill Sold to Liquidator
UPDATE 9:18 a.m.: Not Looking Good for RG's Warren Plant
Copyright 2012 The Business Journal, Youngstown, Ohio.