Former Lee Steel committee’s case closure objection sustained by court

By Caroline Salls

Pittsburgh, Feb. 9 – An objection filed by LSC Liquidation, Inc.’s, formerly Lee Steel Corp., official committee of unsecured creditors to closure of the company’s Chapter 11 case was sustained Tuesday by the U.S. Bankruptcy Court for the Eastern District of Michigan.

As a result, judge Marci B. McIvor said in Tuesday’s order that a status conference will be held on Jan. 17, 2017 to determine whether LSC’s case should remain open.

As previously reported, the committee argued that closing the case is not justified because the estates are not fully administered. Also, the committee said it recently began 45 adversary proceedings that are currently pending, and there are 30 additional avoidance claims that are yet to be filed.

The objection said, “It is well settled that ‘an estate cannot be fully administered while there are outstanding motions, contested matters, or adversary proceedings pending before the court.’”

Lee Steel is a Novi, Mich., steel maker that filed for bankruptcy on April 13, 2015. The Chapter 11 case number is 15-45784.

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