MARTINS FERRY - Wheeling businessman Quay Mull is the apparent new owner of RG Steel's Martins Ferry plant, sold Tuesday at auction in the wake of RG Steel's federal bankruptcy case.
The sale of RG's Warren Steel and its Sparrows Point facilities has been postponed until Aug. 7, due to the involvement of a "stalking horse," or primary bidder, steelworkers in Wheeling were informed Wednesday.
"The stalking horse bidding process has been extended for an additional week for the Sparrows Point plant and the Warren plant," was the message Joe Rosel, president of USW Local 9477 at Sparrows Point, told members in an email Wednesday.
Also Tuesday, Esmark was the successful bidder for the purchase of RG Steel's Yorkville plant, which sold for a reported $4.7 million. Esmark also purchased 50 percent of Ohio Coatings, according to industry reports.
Frontier Steel on Tuesday bought RG's Mingo Junction facility for $20 million and Nucor Steel purchased equipment only from RG's Wheeling Corrugating.
There were no bids for RG's Wheeling headquarters or the remaining 50 percent of the Follansbee coke plant, according to reports.
None of the sales are deemed final until approved in federal bankruptcy court by U.S. Bankruptcy Judge Kevin Carey.
A hearing on the RG Steel sales resulting from Tuesday's auction is set for Aug. 8 in federal bankruptcy court in Delaware.
RG Steel LLC filed for Chapter 11 bankruptcy protection on May 31, stating it could not overcome the deterioration of the steel market and would sell off the three plants it bought last year from Russian steelmaker Severstal for $1.2 billion.
Creditors originally set a July 27 deadline to sell assets, including the company's largest mill at Sparrows Point, Md. They later agreed to extend the sale deadline by about two weeks in an effort to get the most money.
Under the revised plan, the bankruptcy financing agreement that's supplying cash to the company will end on Aug. 10 instead of July 27.