Esmark asks court to help in steel deal
YORKVILLE – RG Steel may be holding to a strict timetable in its effort to complete bankruptcy reorganization, but in the midst of this, it seems the company refused to accept payment on an agreed to purchase of its interests in the Ohio Coatings Co. by Esmark Steel Group.
Esmark is now asking the bankruptcy court to compel RG to complete that part of a two-pronged sale it agreed to as part of the bidding portion of the bankruptcy reorganization process it is in now.
OCC is located essentially a stone’s throw away from the Yorkville mill owned by RG Steel LLC, which is now the subject of an intensive assessment by a growing number of government and private sector interests in an attempt to get a firm picture of what were existing environment issues on site at the 100-year-old mill.
Esmark is also moving the court to consider RG’s failure to reveal the true status of the ongoing environmental issues at the mill in Yorkville as a material breach of the agreement.
Esmark Steel Group is asking the federal bankruptcy court to force RG to complete that part of the sale of assets it agreed to that included the sale of the Yorkville mill and a 50 percent interest in OCC.
Additionally, it seems it was in fact Ohio Environmental Protection Agency officials who brought ongoing and unresolved matters connected to the Yorkville mill to the attention of the Esmark Steel Group on the eve of the completion of the court approved sale of the mill.
Either of the actions could be grounds for Esmark to pull its successful bid for the Yorkville assets, but at present it is aggressively working with a growing base of state and federal resources to get a firm assessment of the actual EPA issues and the actual on-site details.
Loccisano may be reached at firstname.lastname@example.org