The Baltimore Sun reported that the auction for RG Steel's Sparrows Point steel mill, expected Tuesday, will be delayed by a week.

The sale of the Baltimore County facility as well as RG Steel's assets in Warren, Ohio, is now scheduled for 10 AM next Tuesday in New York.

Attorneys for the company did not give a reason for the delay in a court filing Tuesday, other than to say that RG Steel officials are authorized to postpone the auction as they "deem appropriate" if major creditors agree.

The auction for RG Steel's assets in the Wheeling, W.Va., region went forward Tuesday as planned, though results were not available as of early evening.

Mr Jerry Conners, president of the United Steelworkers Local 1223 in Yorkville, Ohio, said his understanding was that auctions for the Sparrows Point and Warren facilities were delayed to allow a primary bidder known as a stalking horse to come on board.

Delaware federal bankruptcy Judge Kevin J. Carey had approved a sale schedule that called for an auction Tuesday if a stalking-horse bidder had not emerged by Monday afternoon or as late as Aug 21 if a stalking horse bidder did appear Monday.

Source - The Baltimore Sun

(www.steelguru.com)