Judge Holds Initial Hearing In RG Steel Bankruptcy
WILMINGTON, Del. (AP) — An attorney for RG Steel LLC says rumors that the struggling steelmaker is going out of business within days are not true.
At a bankruptcy hearing Friday, the attorney said rumors that the company will stop making steel next week are false, and that it plans to continue operating “for some time” as it looks for a buyer.
RG Steel filed for Chapter 11 protection Thursday, a week after announcing it would idle factories in three states and lay off thousands of employees.
At a first-day hearing, the judge authorized RG Steel to continue paying employees and seemed receptive to its plan to
continue paying vendors whose goods and services are critical for RG Steel’s continued operations.
But the U.S. trustee raised concerns about the company’s proposed bankruptcy financing plan.
(Copyright 2012 by The Associated Press. All Rights Reserved.)