RG Steel seeks approval for 90-day extension of plan exclusive periods

By Jim Witters

Wilmington, Del., Jan. 3 - RG Steel, LLC is seeking a 90-day extension of its exclusive periods for filing a Chapter 11 plan and for soliciting votes on that plan, according to documents filed Jan. 3 with the U.S. Bankruptcy Court for the District of Delaware.

If granted, the exclusive period for filing a Chapter 11 plan would be extended to April 26 from Jan. 26. The exclusive period for soliciting votes would be extended to June 25 from March 27.

The company needs the additional time to allow completion of its asset monetization and recovery efforts.

"The debtors have retained ASK LLP to pursue additional sources of recoveries, including collection of certain accounts receivable and avoidance actions. In addition, the debtors have significant causes of action relating to the purchase of the former RG facilities from Severstal, among other claims. The proceeds of these monetization efforts and litigation claims would serve as the underpinning of any further distributions in these cases," the motion states.

A hearing on the request is scheduled for 10 a.m. ET on Feb. 26.

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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