Ch. 11 Judge Won't Stay RG Steel Unit's Massey Contract Suit

Law360, New York (July 27, 2012, 6:45 PM EDT) -- A Delaware bankruptcy judge on Friday denied Massey Energy Co.'s bid to stay a $31.8 million contract suit brought against it in West Virginia court by a nonbankrupt business partially controlled by debtor RG Steel LLC.

U.S. Bankruptcy Judge Kevin J. Carey denied the stay motion with prejudice, finding that plaintiff Mountain State Carbon LLC is not a debtor despite being 50 percent owned by bankrupt RG Steel.

RG Steel, through a bankrupt subsidiary, is a 50 percent owner of the Mountain State Carbon joint venture...
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