Business & Tech
RG Steel in Court Over Sparrows Point Sale
A dispute over a $125 million payment has Severstal and new Sparrows Point owners RG Steel in court.
Months after RG Steel finalized the of the historic Sparrows Point steel mill, previous owner Severstal is suing over a $125 million cash payment.
Forbes, citing a filing in U.S. District Court, reported Friday that RG Steel is trying to cut the $125 million cash payment to $1.9 million.
Forbes reported that the Severstal suit argues that the $125 million payment "is subject to final adjustments involving debt and working capital, but alleges that RG Steel is trying to adjust the price using impermissible changes in accounting procedures."
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The suit also says that adjustments claimed by RG Steel remain "outside the scope of arbitration agreed to in the deal," according to Forbes.
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