RG Steel files 'clawback' suits to get money repaid

More than 280 complaints filed against suppliers

January 08, 2013|By Jamie Smith Hopkins, The Baltimore Sun

RG Steel has filed more than 280 "clawback" suits aimed at getting companies to repay money received from the steel company in the three months before its bankruptcy.

RG Steel, formed to buy the Sparrows Point mill and several other facilities in 2011, quickly became insolvent and filed for bankruptcy protection last May. When it auctioned off its mills for pennies on the dollar last summer, it had more than 1,000 creditors in and beyond the region.

Now the company is seeking to have suppliers — at least some of which are also creditors — turn over payments it made to them in the 90 days leading up to its bankruptcy filing. The clawback lawsuits were filed this week, some of them demanding hundreds of thousands of dollars back.



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