Summer Sale Extended! Get unlimited digital access for 13 weeks for $13.
Topics

The Renco Group, Inc.

RG Steel creditors' lawsuit request is flawed, executives say

RG Steel creditors' lawsuit request is flawed, executives say

The executives whom RG Steel's unsecured creditors want to sue for allegedly mismanaging the bankrupt company said in court filings this week that the claims are baseless. The Official Committee of Unsecured Creditors asked permission in February to sue the founder and chief executive of the Sparrows Point-based steelmaker, alleging that founder Ira Rennert worsened the company's financial situation to improve his own and that his CEO went along with it. Among the claims: that Rennert delayed an inevitable bankruptcy and added to RG Steel's debt to dilute his ownership, an attempt to avoid liability for the company's underfunded pension plans. The federal Pension...

Loading
86°