wjz-13 all-news-99-1-wnew 1057-the-fan 1300logo2_67x35
FIRST WARNING WEATHER: Severe Thunderstorm Warning Until 4 p.m. Weather App | Current Conditions | Video Forecast | Radar

Local

O’Malley Writes To Sparrows Point Lender

View Comments
sparrows point

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up

ANNAPOLIS, Md. (AP) — Gov. Martin O’Malley is asking General Electric to help stabilize the financial arrangement that helped build RG Steel in order to prevent layoffs at the company’s Sparrows Point steel plant in Maryland.

In a letter dated Wednesday, O’Malley asked General Electric Chairman and CEO Jeffrey Immelt to personally review the matter.

In April, GE Capital, which provides loans and leases to mid-size and large U.S. businesses, loaned $750 million to support the acquisition of three steel companies from Severstal North America to form RG Steel.

But O’Malley says RG Steel’s liquidity is now unstable, partly because GE and other financing institutions shifted funds needed to support business operations to reserves. The governor says RG Steel feels the decision has frustrated its efforts to improve its liquidity.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

View Comments
blog comments powered by Disqus
Follow

Get every new post delivered to your Inbox.

Join 3,191 other followers