Sparrows Point sale finalized
The sale of the massive RG Steel Sparrows Point facility was completed Friday, prompting officials in the auto industry to call for internal assessments about what the sale could mean to their existing supply chain in the immediate future, though there was no confirmation what those interruptions might be – if any.
Matters slated to be addressed today in the federal bankruptcy court are expected to include details concerning Mountain State Carbon’s self-funded insurance status and its lack of adequate funding will have in the eyes of the West Virginia Insurance Commissioner’s office, and what should be done in the immediate future to address that costly concern.
At the heart of the issue currently is whether or not the State of West Virginia will be allowed to take possession of the financial collateral the now bankrupt steel company had to provide on balance for just the sort of shortfall situation its bankruptcy is creating now and into the future as it has said it recently confirmed it will not continue payment of claims going forward.
Also, according to the court filings, attorneys for both sides are preparing for the anticipated two-days of trial procedures expected to focus on details of the purchases pending between RG Steel and Esmark Steel Group that focus on the two Yorkville steel facilities.
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