Bankruptcy Judge Approves RG Steel Bonuses

Ten executives could share a pool of more than $20 million.

A U.S. bankruptcy judge on Wednesday authorized RG Steel's plan to pay out more than $20 million in bonuses to top company executives.

Ten senior executives, including CEO John Goodwin, would be eligible for the bonuses, if they accomplish certain goals, including selling the company's assets at a price that would satisfy the company's senior creditors, according to a Herald-Star (Steubenville, Ohio) report.

No bonus money will be distributed until senior and junior lenders have been satisfied, according to the report.

U.S. Bankruptcy Trustee Roberta DeAngelis and unsecured creditors, including the United Steelworkers union, had objected to the bonuses.

Other executives eligible for bonuses are Rich Caruso, chief financial officer; Dave Pryzbylski, chief administrative officer; Mark Whalen, chief operating officer; Jerry Nelson, chief commercial officer; Jeff Gennuso, comptroller; Howie Japlon, general counsel; Glen Mikaloff, general manager of Sparrows Point; Tom Cera, general manager of Warren and Wheeling; and George Lukes, vice president of quality assurance, according to a report in Baltimore Brew.

RG Steel, which purchased the Sparrows Point steel plant in March 2011, filed for bankruptcy protection on May 31.

amdactivist July 19, 2012 at 09:03 PM
wonder how much went into his pocket? Just like obama sending millions of our tax $$ to the auto/banking and wall street ceo's.. NO BAILOUTS.. JUST PAYBACKS..
Buzz Beeler July 20, 2012 at 12:28 AM
I guess the county won't get their $4.5 million for quite awhile, or at least until the bad guys get their goodies.
Steve July 20, 2012 at 03:22 AM
If you actually read the article you would know that the "bad guys" only get their bonuses after everything else is paid off. Reading comprehension has never been your strong point.
Sharon Shoemaker July 20, 2012 at 12:57 PM
This is ridiculous. Really RG Steel? You're giving bonuses to those who put the company in bankruptcy, but screw those that make your money for you - the workers who toil every day in your facilities. They shouldn't get bonuses until the workers are taken care of, period.
Buzz Beeler July 20, 2012 at 02:44 PM
I did read the article. I said Baltimore County. Did you read this quote, "No bonus money will be distributed until senior and junior lenders have been satisfied, according to the report." Anyone who lent that company money with it's track record and owners reputation is about as smart as O'Malley who called in his markers for an additional credit line. GE is part of that deal and they are bad guys. http://www.baltimorebrew.com/2011/12/30/omalley-asks-ge-to-free-up-credit-for-sparrows-point/ I see you still use the same old vocabulary - wingnut - not very bright for one who claims to be someone else. You are always way over your head and outclassed.
Steve July 20, 2012 at 03:07 PM
Your right, I invented the term "wingnut" and I am the only one allowed to use it. Geez, What a Maroon!
Steve July 20, 2012 at 03:14 PM
If the Governor had sat on his hands and done nothing you would be crying about that. LOL "the Owner's reputation"??? The guy is a self made Billionaire who built numerous companies from scratch including the company that built all the Humvees used by the military.
Buzz Beeler July 20, 2012 at 03:47 PM
Are you talking about the vehicles that all of those troops were killed and maimed in because of poor design for combat conditions when dealing with IUD's. Saddam Hussein also had a ton of money.
Mary Ann E July 20, 2012 at 03:54 PM
We all know how the system works.. They used to be called king, duke, lord, czar and caesar -- now they're ceo, cfo, coo, comptroller and legal council (lawyer). Same game - different centuries.....
Buzz Beeler July 20, 2012 at 04:01 PM
Mary, nothing has changed.
Steve July 20, 2012 at 04:02 PM
No the Hummer worked flawlessly for what it was intended to do. The military misused it as a combat patrol vehicle. It was never supposed to be one. http://www.militaryhummers.info/humvee/
Buzz Beeler July 20, 2012 at 04:19 PM
"The humvee is probably one of the most successful wheeled vehicles that ever came into military service." A quote from your own website. All military vehicles are involved in combat that is why they call them MILITARY VEHICLES. You think they just call time out when the shooting starts and a humvee is in the line of fire?
Steve July 20, 2012 at 04:49 PM
No they are not. Patrol vehicles are different from support vehicles.
Steve July 20, 2012 at 06:37 PM
I wonder if the Brazilians will keep them on or have they already negotiated some kind of sweetheart severance packages on top of the bonuses?
dani kane July 20, 2012 at 08:33 PM
I cant believe they are taking a 20 million dollar bonus. I wonder why they deserve it. Oh wait a minute I know - because they didn't know how to run a steel company and they unemployed thousands of workers. Bravo. I wonder if their heads are going to be hunted.
Steve July 20, 2012 at 11:20 PM
The sad part is, that some of these laid off workers will still vote for RMoney even though they know this is exactly how he made his Billions. He bought distressed companies strip them of their assets and put them under all the while paying himself and his cronies big bonuses.
David Robert Crews July 21, 2012 at 06:49 AM
As said in the article; "a price that would satisfy the company's senior creditors," - Who determines who those "senior creditors" are? That could really cut out a lot of the creditors from the equation. It is not "after everything else is paid off", as said in a comment.
dani kane July 21, 2012 at 12:03 PM
where did the 20 million spare dollars come from? i must be an idiot, but really, where did it come from?
Steve July 21, 2012 at 02:35 PM
The Senior creditors are already determined by the company. RG Steel has a senior credit facility with two tranches of $625 million and $25 million available and outstanding obligations of about $440 million, according to court documents. It also has a junior credit facility with three available tranches -- two of $62.5 million and another of $100 million. The junior facility has about $218.7 million outstanding. So with this ruling it looks like the Senior will get paid first. Then the Executive bonuses, then the Junior Creditors then the Secured creditors and then the Unsecured creditors. The company has cash Dani, the outflows wer exceeding the inflows thats why they filed bankruptcy. They just sold their Weirton Plant for scrap for $4 million this week.


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