RG Steel gets OK for agreement with CSL on $37.72 million claim

By Kali Hays

New York, Jan. 21 – RG Steel, LLC obtained authorization to enter a settlement agreement with CSL International Inc. resolving claims totaling $37.72 million under a Wednesday order from the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, 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 with court approval.

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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