RG Steel negotiates settlement of $37.72 million in creditor claims

By Kali Hays

New York, Dec. 8 – RG Steel, LLC is seeking court authorization to enter a settlement agreement with CSL International Inc., according to a Friday motion with the U.S. Bankruptcy Court for the District of Delaware.

CSL provided dry-bulk cargo shipping services to RG before it filed for bankruptcy in 2012 and subsequently filed two claims against RG and a subsidiary, RG Steel Sparrows Point, LLC, both in the amount of $18.86 million.

RG disputed the claims but negotiated the settlement to avoid the cost and delay related to continued litigation on the claims.

Under the settlement, a claim by CSL in the amount of $8.25 million will be allowed as a general unsecured claims against RG, while all other claim amounts will be expunged.

Both parties will release all claims against one another and all litigation related to the claims will be dismissed upon approval of the agreement, according to the motion.

A hearing to consider the settlement is scheduled for Jan. 21.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.