NEW YORK A
union pension fund is suing RG Steel Holdings LLC for some
$6.34 million related to pension payments around the time of
the defunct steelmakers bankruptcy.
The lawsuit filed in
U.S. District Court in Illinois alleges that the Central
States, Southeast and Southwest Areas Pension Fund, a
multiemployer pension plan, had incurred penalties and losses
as a result of RGs withdrawal from the pension plan after
filing for Chapter 11 bankruptcy protection in May last year
amm.com, May 31, 2012).
The lawsuit said that
around Aug. 25, 2012, RG Holdings "directly or indirectly owned
at least 80 percent of the ownership interest of RG Steel
Wheeling LLC" and that RG Wheeling was bound by collective
bargaining agreements with local unions under which RG was
required to make contributions to the pension fund.
The pension fund
alleges that when RG Steel "permanently ceased to have an
obligation to contribute to the pension fund" it incurred a
Attorneys for the
pension fund and RG Steel could not be reached for comment.