RG Steel names winning bidders for Sparrows Point, Warren facilities

By Jim Witters

Wilmington, Del., Aug. 10 - RG Steel, LLC has declared successful bidders for its Sparrows Point, Md., and Warren, Ohio, facilities, with a total bid of $88 million, according to documents filed Aug. 10 with the U.S. Bankruptcy Court for the District of Delaware.

RG Steel reported that the successful bidder for the facilities at 1430 Sparrows Point Blvd., Sparrows Point, Md., is Environmental Liability Transfer, Inc.; Commercial Development Co., Inc.; and Sparrows Point, LLC with a cash purchase price of $72 million.

The bidders are entitled to bid protection of a $2 million breakup fee.

CJ Betters Enterprises Inc., with a cash purchase price of $65 million, is the backup bid.

The successful bidder for the facilities at 999 Pine Ave.SE, Warren, Ohio, is CJ Betters Enterprises Inc. with a cash purchase price of $16 million.

The bid submitted by Environmental Liability Transfer, Inc., Commercial Development Co., Inc. and Warren, LLC, with a cash purchase price of $15 million, is the backup bid.

A sale hearing is scheduled for 10 a.m. ET on Aug. 15.

RG Steel, a Sparrows Point, Md., flat-rolled steel processor, filed for bankruptcy on May 31. The Chapter 11 case number is 12-11661.

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