NEW YORK The creditors of
bankrupt steelmaker RG Steel LLC have renewed their quest to
collect more than $238 million from RG parent Renco Group
Inc.s chairman, Ira Rennert, and have added the name of
former RG chief executive Vincent J. Goodwin as a
The creditors filing asks
the court for permission "to commence, prosecute, and settle
claims and causes of action against Rennert and Goodwin" for
breaching their fiduciary duties to the creditors, as well as
against Rennert and Renco "for aiding and abetting
Goodwins breaches of his fiduciary duties," according to
a Feb. 22 filing in U.S. Bankruptcy Court in Delaware.
The creditors claim Rennert and
Goodwin delayed the steelmakers bankruptcy in order to
allow Renco to transfer a portion of its equity interest to
Cerberus Capital Management LP in an effort to avoid meeting
pension plan obligations, according to the filing.
"In lieu of filing for
bankruptcy ... Rennert and Goodwin caused the debtors to enter
into the Cerberus transaction and incur massive amounts of
secured putative indebtedness," according to court documents.
"As further described in the complaint, the Cerberus
transaction was designed to benefit Rennert and Renco and was
not in the best interests of the debtors."
A Renco spokesman called the
claims "frivolous and without merit."
Earlier this month, the
creditors withdrew their previous challenge seeking $238
million from Renco and Rennert (
amm.com, Feb. 4). The withdrawal was filed without
prejudice, allowing them to refile at any time.