LB Steel committee looks to recover $158,696 in transfers to supplier

By Caroline Salls

Pittsburgh, June 13 – LB Steel, LLC’s official committee of unsecured creditors filed a lawsuit Monday in an attempt to recover $158,696 in alleged preferential transfers made to Russel Metals Inc. by LB Steel, according to a filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The committee said Russel Metals provided steel plate, steel parts and other goods and services to LB Steel.

According to the lawsuit, LB Steel was insolvent during the 90 days before its bankruptcy filing when the transfers in question were made.

“The payments enabled defendant to receive more than it would have received if this case was a case under Chapter 7 of the Bankruptcy Code, the payments had not been made and defendant received payment of its debt to the extent provided by the provisions of the Bankruptcy Code,” the lawsuit said.

The committee said it is entitled under the Bankruptcy Code to seek avoidance of the payments.

LB Steel is a Harvey, Ill.-based producer of strip plate mills. The company filed bankruptcy on Oct. 18, 2015 under Chapter 11 case number 15-35358.

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