RG Steel set to sell another Ohio steel plant

Fri Aug 3, 2012 11:14am EDT

(Reuters) - RG Steel LLC, which filed for bankruptcy protection in May, has found a buyer for its Mingo Junction, Ohio steel plant for $20 million, court records show.

The steel plant is being sold to Frontier Industrial Corp.

On Wednesday, the company found buyers for some of its assets as the steel maker looks to restructure its debt and work its way out of bankruptcy.

Earlier this week, the auction of the company's Sparrows Point plant in Baltimore and a plant in Warren, Ohio, was postponed to August 7, as RG Steel seeks an additional week to find a lead, or "stalking horse," bidder for the property.

All the winning bids are subject to court approval.

RG Steel filed for Chapter 11 bankruptcy protection on May 31, saying it could not overcome the deterioration of the steel market.

The case is In re: WP Steel Venture LLC, U.S. Bankruptcy Court for the District of Delaware, No. 12-11661.

(Reporting by Tanya Agrawal in Bangalore; Editing by Saumyadeb Chakrabarty)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.