Joint Venture: RG Steel's $72.5 million Sparrows Point sale complete

By Caroline Salls

Pittsburgh, Sept. 14 - Joint venture partners Hilco SP LLC and Environmental Liability Transfer Inc. (ELT), completed their purchase of RG Steel's former mill at Sparrows Point in Baltimore County, Md., according to a news release.

According to the release, the mill at Sparrows Point was idled shortly after RG Steel filed for bankruptcy in May. The U.S. Bankruptcy Court for the District of Delaware approved the $72.5 million sale to Hilco and ELT on Aug. 15.

"At this time, we are evaluating all of our options for the property, which include seeking operators for the mill in its entirety or some of the manufacturing facilities and operations within the 3,400 acre site," joint venture spokesmen Gary Epstein and Randall Jostes said in the release.

"We are also considering removal and resale of industrial equipment and structural demolition followed by environmental remediation of the site as a precursor to redevelopment.

"The evaluation process is expected to take several weeks given the size and scope of the entire operation at Sparrows Point.

"Based on our early assessment, we believe the state of the art cold rolled mill complex with tri-modal transportation capabilities including rare access to a deep water port has great potential for the right operator."

The joint venture said Baltimore County officials recently organized the Sparrows Point Partnership work group to find ways to develop a sizable piece of land on the Sparrows Point peninsula that is not part of the mill.

Within the joint venture, ELT purchased the 3,400 acre Sparrows Point site, along with some reusable buildings, and assumed specified environmental liabilities, the release said.

Hilco purchased above-grade improvements, as well as machinery and equipment.

RG Steel, a Sparrows Point, Md., flat-rolled steel processor, filed for bankruptcy on May 31. Its Chapter 11 case number is 12-11661.

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