RG Steel Creditors Cry Foul Over Asset 'Fire Sale'

Law360, Wilmington (June 18, 2012, 9:23 PM EDT) -- RG Steel LLC’s unsecured creditors accused the bankrupt steelmaker on Monday of rushing to sell its assets for the benefit of owners Renco Group Inc. and Cerberus Capital Management LP.

The company’s proposed bid procedures and debtor-in-possession financing package together dictate a “fire sale,” to be completed in less than two months, that will chill bidding and likely put the assets back in the hands of Renco and Cerberus through a credit bid, the official committee of unsecured creditors said in an objection filed in Delaware...
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