RG Steel fate in a standstill

With the pressure of a short window of sale contract negotiations now open and soon to close for a year’s time Esmark Steel Group saw no immediate movement come from appearances in federal bankruptcy court Friday on its motion to compel bankrupt RG Steel to move forward with part of a two part deal built on the Pennsylvania based steel company’s successful bid to buy the Yorkville mill at auction.

Two days in mid-October have been set aside for the matter between Esmark and RG to come before the court again in a manner allowing for more extensive evidence, testimony and witness participation.

October 15 and 16 was set aside as the hearing dates, according to American Metal Market.

The two part successful bid placed by Esmark for the Yorkville mill also included an offer to purchase RG’s 50 percent interest in the nearby Ohio Coatings Company, a tin coating facility.

Founder and President of Esmark Steel Group Jim Bouchard had previously confirmed he was literally hours from closing the purchase transaction when unaddressed existing environmental issues first came to light.

Esmark alleges RG Steel never disclosed information about the environmental issues, and has said it is not willing to close on the purchase of the Yorkville mill until more is confirmed about the matter and possible remediation options that would not fall destructively to the purchaser.

Loccisano can be reached at kimfromthetl@gmail.com