Massey Accuses RG Steel Of Misusing Bankruptcy Stay

Law360, Wilmington (July 19, 2012, 5:17 PM EDT) -- Massey Energy Co. accused a subsidiary of bankrupt RG Steel LLC on Wednesday of unfairly using an automatic stay to block a $31.5 million contract suit from the coal company while continuing to pursue its own related suit against Massey.

In a motion filed in Delaware bankruptcy court, Massey requested that its automatic stay be modified to allow a subsidiary’s suit to proceed in West Virginia federal court against Mountain State Carbon LLC, a joint venture 50 percent owned by debtor RG Steel Wheeling LLC....
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