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Reports: Sparrows Point Steel Plant Sold to Liquidator

The RG Steel Sparrows Point facility was sold to Hilco Industrial for $72 million.

RG Steel's Sparrows Point plant was sold at auction on Tuesday to an industrial liquidator for $72 million.

Hilco Industrial was the successful bidder after no steel producers showed up at the auction, according to a Baltimore Sun report.

Local steelworkrs union President Joe Rosel told the Sun that "the sale did not go as planned or as expected."

RG Steel filed for bankruptcy protection in May, and was given time to find a prospcetive buyer for the plant before the assets would be sold at auction.

The auction, held Tuesday in New York, was originally scheduled for July 31 and the company was given an additional week to find a so-called "stalking horse" bidder that would kick off the auction bidding.

After such a bidder was not found, the auction proceeded Tuesday.

RG's mill in Warren, Ohio, was sold to C.J. Betters Enterprises, which redevelops industrial sites, for $17 million, according to a Reuters report.

Company head Chuck Betters told Reuters that he hopes to find an operator for the mill after he evaluates the plant's cost base and needed upgrades.

RG Steel paid $1.2 billion for three plants (Sparrows Point, Warren, and Wheeling, W.V.) it bought from Russian steel company Severstal last year.

The total price paid for the three plants is about $125.2 million, according to a report in Baltimore Brew, a fraction of the $434 million owed to "senior" creditors.

A federal bankruptcy court judge still has to approve the sales. A hearing will be held Aug. 15 in Wilmington, Delaware, according to Baltimore Brew.

Union President Rosel told the Sun that he has not given up and he will "fight to find an operator for this plant."

Steve August 10, 2012 at 04:07 AM
The Russians didn't gut it. ISG gutted it.....and there isn't any Japanese steel in the Key Bridge.
Michelle Kidwell August 10, 2012 at 12:00 PM
Give me a NASCAR track. Plenty of room for 1 or 2 big hotels to get a fantastic bay view for guests. Not to mention jobs for the area. Lord wouldn't Casino go nice there also.
charles E.Miller August 10, 2012 at 11:07 PM
I can not believe the goverment state ot federal did not help in some way to keep this mill alive.You say about new jobs will there be 2500 to 3000 for the ones that were loss Ironmaster
John T. August 13, 2012 at 08:47 PM
All of the help in the world is not gonna keep SP open and profitable. Besides, why should our tax dollars go to a company operating in the private sector that has shown steady decline for the last 30 years or more. Let's wait and see how much of our federal tax dollars we're gonna get back from the auto industry before we do that again. GM still owes billions to the taxpayers. In fact, the Federal Government lent them more of our tax dollars than the company was worth on paper. Why not bailout every business that is failing and not just the ones that are union companies that support the these politicians?

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