RG Steel Blasts Enviros' Exemption Claim To Ch. 11 Stay

Law360, Wilmington (July 03, 2012, 9:40 PM ET) -- Bankrupt RG Steel LLC on Tuesday knocked environmental groups seeking an exemption from the firm's automatic stay, saying their motion misconstrues legal concepts they cite as grounds for relief.

The objection, filed Tuesday in Delaware bankruptcy court, says environmental advocates misinterpreted the concepts of a “police power exemption” and “equitable relief” in a June 22 motion to modify RG Steel's bankruptcy stay so the groups could appeal a federal court decision limiting RG Steel's obligations to monitor contamination at its Sparrows Point, Md., mill.

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