NEW YORK — The creditors of bankrupt steelmaker RG Steel LLC have withdrawn a challenge seeking $238 million from Renco Group Inc. and its top executive, according to a filing in U.S. Bankruptcy Court in Delaware.
The creditors had filed a lawsuit last month claiming that RG Steel’s parent company and its chairman and chief executive officer, Ira Rennert, delayed the steelmaker’s Chapter 11 filing to benefit themselves (amm.com, Jan. 18).
The notice of withdrawal, filed without prejudice, is a procedural motion, which means the creditors can refile at any time.
An attorney representing the creditors declined to comment.