Would-be buyers hoped to operate RG: union

Dec 19, 2012 | 03:59 PM | Chris Prentice

Tags  Sparrows Point facility, RG Steel, Hilco Trading, Sherman International, Jindal Steel & Power, Severstal, Seaport Group, bankruptcy auction Chris Prentice

NEW YORK — At least two parties were said to have expressed an interest in buying and operating parts of the former RG Steel LLC Sparrows Point, Md., steelmaking facility prior to the sale of one of its top assets earlier this quarter.

A United Steelworkers union official confirmed to AMM that two groups had expressed interest in operating at least some of Sparrows Point’s production facilities before news broke that Nucor Corp. had bought equipment from the site’s cold mill for parts (amm.com, Dec. 12).

According to the union official, one interested party was Pittsburgh-based iron and steel equipment supplier Sherman International Corp.

The union official declined to comment further, but AMM has been told that Sherman had submitted a letter indicating initial interest by a Nov. 12 deadline set by auction firm Hilco Trading LLC, which purchased the entire Sparrows Point complex and land with Environmental Liability Transfer Inc. for $72.5 million at the bankruptcy auction (amm.com, Aug. 16).....