Few buyers emerge as clear fit for RG: analysts
Jul 24, 2012 | 04:15 PM
| Chris Prentice
Tags
RG Steel,
Renco Group,
bankrupt assets sale,
Ira Rennert,
expedited sales process,
bidders,
bid deadline,
steel asset auction
Bridgt Freas
NEW YORK — Few suitors have emerged as clear potential buyers of bankrupt RG Steel LLC’s assets as the bid deadline nears, domestic steel analysts told AMM.
The deadline for bids is the end of the day Wednesday. No bidders had publicly emerged as of mid-day Tuesday, though AMM understands that 19 companies have submitted participation materials to put in bids across all of the assets.
If a stalking-horse bidder or bidders emerge by day-end Wednesday, an auction will take place at the end of August, but without any, the assets will go to an immediate sale on July 31. The expedited sales process started when the Sparrows Point, Md.-based steelmaker filed for Chapter 11 bankruptcy protection in May (amm.com, May 31).
Analysts told AMM that a company with raw materials, like Brazil’s Companhia Siderúrgica Nacional (CSN), or a private equity firm would be the most likely candidates, although a soft sheet market, the age of the assets and a short bidding deadline have been working against the sale, they said.....
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