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