RG Steel Goes After $100M In Flurry Of Clawback Suits

Law360, Wilmington (January 8, 2013, 12:00 AM EST) -- The remnants of RG Steel LLC on Monday began unleashing hundreds of lawsuits aimed at clawing back more than $100 million in alleged preferential payments made to creditors immediately prior to the defunct steelmaker’s bankruptcy filing.

By Tuesday, the estate of RG Steel Sparrows Point LLC — which operated the steelmaker’s largest mill in Baltimore before it was sold for scrap in bankruptcy — had filed nearly 300 of the so-called preference actions in Delaware bankruptcy court.

The lawsuits target hundreds of suppliers and other trade...
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