RG Steel unsecured committee eyes cash collateral extension to June 27

By Kali Hays

New York, April 15 - RG Steel, LLC's official committee of unsecured creditors is looking to amend the company's final cash collateral order to allow continued access to the cash through June 27, according to a Monday motion filed with the U.S. Bankruptcy Court for the District of Delaware.

Though the company's secured parties have not agreed to the amendment, the committee claims it is necessary in order to ensure the company is using the cash collateral" in accordance with the terms and conditions of the final cash collateral order," the motion stated.

As previously reported, the company had sought to withdraw its March 12 request for an amendment to the cash collateral order allowing continued use of cash collateral, because it had received consent to use the cash from its second-lien agent, second-lien lenders and third-lien lender.

The committee did not consent to the withdrawal, but the court determined that the committee had no grounds to object, according to the motion.

The committee has asked the court to schedule a hearing to consider the request.

RG Steel, a Sparrows Point, Md., flat-rolled steel processor, filed for bankruptcy on May 31, 2012. Its Chapter 11 case number is 12-11661.

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