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Court approves Sparrows Point settlement, dismisses bankruptcy

Court approves Sparrows Point settlement, dismisses bankruptcy

A U.S. bankruptcy judge approved a settlement Thursday in a bankruptcy suit involving the former owner of the Sparrows Point steel mill, agreeing to dismiss the long-running and contentious case.

The deal in the RG Steel case, reached after more than a year of mediation, directs $12 million of a $15.6 million pool toward union creditors, including $6.3 million for vacation and severance pay.

The agreement is expected to yield about $1,500, before taxes, for each of the more than 4,000 union workers who lost their jobs when the firm entered bankruptcy in 2012.

The structured dismissal removes the case from the traditional Chapter 11 bankruptcy process in a rare but...

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