Judge OKs RG Steel Retention Pay Over Ex-Workers' Outcry

Law360, New York (November 21, 2012, 4:40 PM EST) -- A Delaware judge on Tuesday gave bankrupt RG Steel LLC permission to pay 21 key employees salaries and health benefits through the end of the year, despite objections from the company's laid-off steelworkers that the payments constituted a "gift."

U.S. Bankruptcy Judge Kevin Carey ruled that RG's proposed “key employee retention plan” was "in the best interest of [RG Steel], their estates and creditors, and other parties in interest.”

After being hit hard by falling steel prices, rising costs and ongoing legal disputes, the Maryland-based steelmaker...
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