In a federal bankruptcy court in Delaware Thursday, RG Steel's official committee of unsecured creditors asked for approval of a motion for an order that would allow them to settle certain claims on "behalf of the debtors' estates against Ira Rennert," the billionaire behind the Renco Group, RG Steel's parent company.
Local news sources reported that the creditors are seeking as much as $238 million and argue that Rennert delayed RG Steel's inevitable bankruptcy filing and that RG Steel was prepared to seek bankruptcy protection in December 2011, the same year RG Steel was formed and over a year before RG actually filed for bankruptcy. The creditors also said that Rennert instead had RG take on additional debt to avoid being liable for the steelmaker's pension plans.
A hearing has been scheduled for February 14 in the Delaware court and any objections against the motion must be filed by the end-of-day on January 31, 2013.