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UPDATED: Sparrows Point auction postponed until Aug. 7

UPDATE: The auction of the Sparrows Point and Warren steel mills was postponed until Tuesday, August 7, it was confirmed by the U.S. Bankruptcy Court late today.

The auction – which is not open to the public or press – is set to take place at the law offices of Willkie Farr & Gallagher, 787 Seventh Ave., New York City, at 10 a.m.

The auction of two other RG Steel assets – Wheeling Corrugating Co. and “Remaining Wheeling Assets” – took place today. The results of the auction were not made public and are not expected be formally announced until a hearing before U.S. Bankruptcy Judge Kevin Carey on August 8.

The president of Local 9477 of the United Steelworkers told members this morning that today’s scheduled auction of the Sparrows Point steel mill has been delayed as parent company RG Steel seeks an additional week to find a lead, or “stalking horse,” bidder for the property.

“The stalking horse bidding process has been extended for an additional week for the Sparrows Point plant and the Warren plant,” Joe Rosel, president of Local 9477, told members this morning in an email.

The Brew reported last week that – in addition to a number of scrap dealers – three bidders have emerged as potential operators of all or part of the stricken steel mill.

They are Brazilian steelmaker CSN, Optima Fund Management/Metinvest, a Ukraine-based company, and domestic steelmaker Nucor.

Bankrupt RG Steel was supposed to designate a stalking horse bidder or bidders for its Sparrows Point, Warren, Ohio, and Wheeling, W.Va., steel plants by 5 p.m. yesterday.

If not, the steel properties were set to go into a final auction at a Manhattan law office this morning.

There is still no official word of the status of the auction on the website of the U.S. Bankruptcy Court in Wilmington.

According to Rosel’s email, “We are still hopeful that a new owner will result from the stalking horse bidding process. Additionally all of our benefits (health care/SUB, etc) will continue in full effect through this extension.”

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  • CORVETTE1971STINGRAY

    REALLY THE SAME JUDGE THAT OK D THE POS MANAGEMENT BONUSES, IS THE JUDGE THAT WILL OK THIS GIVE A WAY PRICES ON THE ASSETS, PLEASE DONT THINK SOMETHING GOOD IS GOING TO HAPPEN, ITS NOT….THE 20 MILLION FOR THE MINGO GIVE AWAY, WILL PAY FOR THESE A-HOLES BONUS. GOOD LUCK TO ALL , DO THE BEST YOU CAN WITH THIS SORRY SITUATION

  • Extrainer

    Be carefull who you threaten, rememmber we are real workers from in the mill not a paper pusher

  • Mtngirl

    The 20 mill bonus will only be paid if mill’s are sold as a going concern (meaning they will be operated) I really hope they get their bonuses.

    • newsflash

      who told you that?

    • Nashorn

      That’s not right, there is a “going concern bonus” as a part of the overall plan, but this is only a part of the overall plan, not all of it.

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