Bankruptcy Judge Approves RG Steel Bonuses

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.