NEW YORK A Canadian recycling company has acquired a large lot of rail scrap from RG Steel Railroad Holding LLC as part of RG Steel LLCs asset liquidation at Sparrows Point, Md.
K&K Recycling Services of Pickering, Ontario, completed the all-cash transaction of $301,400 early this month, according to documents filed in U.S. Bankruptcy Court in Delaware.
According to a July 6 letter, K&K Recycling Services made its formal offer to RG Steel for the rail scrap at its Maryland facility earlier this summer. In its letter, the company asked for access and permission to process the scrap locomotives and rail-related equipment on site at Sparrows Point. The company will provide a torch crew and a scrap handler to process and load the scrap material, it said.
An official for K&K Recycling said in the letter that the companys main operation is based in Pickering, with satellite yards in Hamilton, Ontario; Edmonton, Alberta; and Detroit. The company processes and markets about 25,000 tons of ferrous scrap and 3 million pounds of nonferrous metals each month.
"Our organization has been conducting business within the metal recycling industry for the past 20 years, providing services for plants throughout North America," it said.
The scrap sale appears to have preceded the Aug. 15 sale of RG Steels Sparrows Point steelmaking complex to Hilco Industrial LLC and Environmental Liability Transfer Inc. (amm.com, Aug. 15) .
Bankruptcy court Judge Kevin J. Carey approved the Sparrows Point sale after a number of changes were made to the sale documents. One change included an additional $500,000 to the original $72-million bid to fund an offshore sitewide environmental investigation following objections from the Department of Justice on behalf of the U.S. Environmental Protection Agency and the Maryland Department of the Environment.