Creditors drop plan to sue former mill owner
A committee of unsecured creditors has withdrawn plans to target the finances of former RG Steel owner Ira L. Rennert.
The committee last month had asked a federal bankruptcy court judge to allow its members to sue or prosecute Rennert, the New York-based billionaire at the helm of the now bankrupt and defunct RG Steel.
But Friday, the group filed a brief motion withdrawing that earlier request “without prejudice,” which means the group reserves the right to refile the motion at a later date.
There was no further explanation about the group’s intention. The group earlier had lodged allegations in the January court document that Rennert had committed “breaches of fiduciary duties,” and argued that it could possibly recover more than $238 million if allowed to pursue the claims against Rennert.
Andrew Shea, a spokesman for Rennert’s Renco Group, a New York holding company, told the Baltimore Sun in January that the claims were ”frivolous and without merit.”
RG Steel filed for federal bankruptcy in a Delaware Bankruptcy Court in May, the same time it closed its doors at the Warren plant and laid off more than 1,000 workers.