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Robert Meyers / AP, file
The RG Steel Sparrows Point mill, above, on the Patapsco River near Baltimore, filed for Chapter 11 bankruptcy protection on May 31, a week after announcing that it was idling operations in three states and laying off employees.
One of America's historic industrial sites -- the 120-year-old Sparrows Point steel mill in Baltimore, where steel for the Golden Gate Bridge was forged -- was auctioned off Tuesday, but mystery swirled around who bought it.
The plant is one of three steelmaking assets put up for sale by RG Steel, which filed for Chapter 11 bankruptcy protection on May 31.
But according to the Baltimore Sun, RG Steel -- as well as its attorney and the union -- has been silent on the sale for days outside of court filings.
"In these cases where … the information stops, it's because there's just literally nothing good to share," analyst Peter A. Chapman, president of Bankruptcy Creditors' Service Inc., told the Sun.
Sparrows Point and another RG Steel mill in Warren, Ohio, were part of an auction held at the law offices of Willkie Farr & Gallagher in Manhattan.
No details were filed with the U.S. Bankruptcy Court late Tuesday, the Sun reported, but the paper quoted a source saying the proceedings were held in the afternoon.
Maryland's Department of the Environment objected to the sale of Sparrows Point, saying in a court filing Tuesday that it must include a plan for completing environmental clean-up that had been approved for the site.
Afp / AFP/Getty Images
San Francisco's iconic Golden Gate Bridge turns 75. Look back at the history of the bridge in our slideshow.
Any sale must have the approval of Delaware's Bankruptcy court, which was to hold a hearing on Wednesday.
PhotoBlog: Exploring the offbeat of the Golden Gate Bridge
'I can't even sleep at night'
It is unclear what will happen to the several thousand Sparrows Point employees and contractors, the Sun reported, but they appear to hope a company that will restart steelmaking will purchase the mill.
"We're pretty much scared to death," the newspaper quoted Mike Hartnett, who it said had worked at Sparrows Point for 37 years, as saying.
"I can't even sleep at night," he told the Sun.
May 27: Thousands streamed in to San Francisco and southern Marin County to celebrate the 75 anniversary of the Golden Gate Bridge, which turned 75 in May.
Thousands lose jobs
According to the newspaper, nearly 2,000 employees -- practically the entire workforce -- have been laid off from Sparrows Point in recent weeks. Another 1,000 contractors, vendors and suppliers have either lost or are in the process of losing their jobs as a consequence of the bankruptcy, the Sun cited Baltimore County officials as estimating.
Golden Gate Bridge celebrates 75th birthday in style
Last week, some equipment and facilities from RG's Wheeling mill at Mingo Junction, Ohio, were sold off at auction. But the price was small change compared with the $1.2 billion RG Steel paid Russian steelmaker Severstal for all three plants last year.
Equipment and intellectual property related to the Wheeling plant were sold to Nucor Corp. for $7 million, while its Martins Ferry mill in Ohio was sold for $2 million. RG Steel also sold its equity rights in Ohio Coatings to Esmark Steel Group for $1.5 million.
Steel was first made at Sparrows Point in 1889. By the mid-20th century, it was the world's largest steel mill, stretching four miles on the southeast edge of Baltimore Harbor.
Full US News coverage on NBCNews.com
Steel for famed bridges
Purchased by Bethlehem Steel in 1916, the mill's steel ended up as girders in the Golden Gate Bridge in San Francisco and in cables for the George Washington Bridge in New York City.
Industry analysts said although Sparrows Point has some modern equipment, such as a cold mill, other machinery is 100 years old and potential buyers were more likely to pick off parts rather than purchase the whole facility.
Behind the scenes with the iron workers, painters and engineers who maintain this iconic bridge and the Coast Guard personnel who patrol its waters.
Charles Bradford of Bradford Research in New York told Reuters that Nucor might be interested in the cold mill, but not the whole plant, as it has a similar mill in Alabama.
Complete coverage of business news on NBCNews.com
Another analyst, John Anton of IHS Global Insight, told the Sun that he thought the Sparrows Point plant is a "good facility."
"I think the company most likely to make a good go of it is someone who makes slabs in Brazil or Russia and sends them there to be rolled," Anton told the Sun.
"I think the union would not like that because it means some employees in the hot mill would lose their jobs," he told the paper.
Reuters contributed to this report.
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Leave a Comment:
China, India or Brazil
Morgan Stanley, ING, Ford?
Gus Weaverly? ( my neighbor) Gus always seems to have something going on.
I would have guessed Romney.
Walmart
What ever happened to the "Living in America" song from James Brown? What has happened to us?
America is doing great. The rich are wealthier than ever. If you are not rich, it's your own fault. Vote Romney.
Vote Romney !! He needs another tax cut . Reason he is running is he will save millions cutting his own taxes he really doesn't care about the people needs
BFDReally
Look at the labels in your clothes. That will tell you the answer.
The pennies the people saved at the register were the seeds. We're now reaping the fruit of those seeds and it's very bitter.
The choice is yours. Buy American made products from American owned and operated companies. the job you save or create might very well be your own.
XDm9mm VERY WELL SAID ... and do not use the AUTOMATED CHECK OUT COUNTERS
America based its economy on cars (which was incredibly stupid). They try to sell you one on tv about five times an hour, and then the japanese moved in. What the hell did you think would happen?
I own two Ford Tauruses right now. I have never owned a Toyota, Honda or Nissan, and never will. I know some parts are globally sourced, but at least I'm trying. You guys with the Civics, Corollas and Rav4s are the problem, and you advertise it every day on the road. That's why we are going downhill.
Starderup YOU ARE RIGHT ! and when teh car makers started to go downhill even backin the mid 70's when AUTOMATION TOOK OVER .. its been all DOWNHILL EVER SINCE ..
I know THAT TOO WAS OBAMA'S FAULT
XDm
I hate to rain on your parade, but all this started a long time ago. Remember NAFTA , & most favored nation trade agreements along with a whole host of other trade agreements ????? Also back in the 70's it was cheaper to buy Japanese steel than make our own. They were buying up all our junked cars and returning them to us as steel products. Also most of the old smoke stack industries failed to modernize plants and implement pollution controls as required by the government. Also most manufacturing was moved off shore to fatten the companies bottom line. Cheaper resources and low wages ( slave labor ) and tax shelters, just to name a few.
bob
Gee.....and who was it that signed NAFTA saying it was the greatest thing for America since sliced bread?
Oh, that's right..........Billy Boy.
mswxyz
Thank you. And I refuse to use "self checkout". Why should I do the job of another? OK... ATM's are a little different, but I only use those after business hours if I need some cash.
Starderup
Americas economy went crazy after WWII as we were for the most part, the only functioning industrial country in the world. WE rebuilt Europe and Asia with the output of OUR factories. The factories WE used to rebuild other nations EMPLOYED the people that made our economy the greatest in the world.
In the 50's we started to see the export of American jobs. It started with those cheap "transistor" radios that were made in Japan. The American people didn't care. The factory closed wasn't where they worked.
It continued with other "consumer" based factories to include the balance of the electronics industries, then textiles, and ultimately virtually all CONSUMER PRODUCTS manufacturing was accomplished overseas.
We truly need to repatriate our CONSUMER manufacturing factories.
No nation ANYWHERE can survive as a CONSUMER nation. We need to revitalize our manufacturing abilities and become once again the PRODUCER nation we were.
Unfortunately, I don't believe politicians nor business concerns have realized that. American Consumers MUST do what politicians and business refuse to do. BRING AMERICAN JOBS BACK. The best way to do that is vote with your dollars.
BUY American made products from American owned and operated companies.
bob1/28
Bob... it started before the 70's. However, in the 70's it started getting PROMOTED by politicians. See my comment #4.9 above.
And the "pricing" differential is bogus. Diane Sawyer recently disproved that theory on a segment of her show Made in America. She and a student out fitted a college dorm room with virtually identical products ALL made in AMERICA and surprise, surprise.... the American made total was actually LESS than the total for the imported products, and the icing on the cake was the quality all appeared to be superior. Of course the quality would take time to prove or disprove, but the appearance of the American made product was superior in craftsmanship.
XDm
One of the points I was trying to make is Unfair Trade practices.
I was working in the iron and steel trade in the 70's. Japan was dumping inferior steel products on us . Yes dumping . All their steel production was government subsidized . Allowing them to dump the stuff on us at below bargain basement prices . To this day Japan refuses to admit to having done this.
bob
bob1/28
Sorry if I appeared condescending or nasty. It's a sore point with me.
I also just wanted to note that it started LONG before the 70's. And unfortunately, no-one really cared because it wasn't their industry or factory that was being destroyed. And unfortunately, you are to a degree one of those people. You make note of the steel industry being destroyed by the Japanese. Yet you didn't make mention of the electronics industry that was being decimated at the same time by the same country using the same tactics.
Don't get me wrong, it's not personal. Everyone was and is responsible. VERY few people in the last 40 or 50 years have actually taken the time to look for the Made in America label. And the problem was exacerbated with the death of Sam Walton. When Sam was alive, you could go into a WalMart and there were banners and flags proclaiming "MADE IN AMERICA"... SAM WALTON saw the problem imports were creating and was doing what HE could to forestall our demise. VERY shortly after Sam died, so did those AMERICAN PRIDE signs.... to be replaced with all imported products.
So, what say you? Will YOU join me and commit to buying nothing but Made in America products unless you have absolutely no alternative?
XDm
HEY !!! NO Problem
I only used iron and steel because I worked in it at that time. I saw what they were doing first hand . As for " will you join me " ? Count my wife and me in.
bob
What Sam Walton figured out is that people look at the price tag, not those origin tags. WE voted with our money and business responded.
peanutGalleryTheater
Sorry.... the policy of WalMart changed AFTER Sam died.
Sam was very concerned about ensuring AMERICANS had jobs to be able to shop in his stores. He PROMOTED American made products, and as such was a true patriot. He was a strong believer in the philosophy of Henry Ford. Hire people and pay them a wage sufficient for the WORKERS to be able to afford the product they built.
Once Sam died, the board changed and wanted to placate Wall Street.
Gee.....and who was it that signed NAFTA saying it was the greatest thing for America since sliced bread?
NAFTA was negotiated by George HW Bush and ratified by Congress after he left office. Bush wanted it ratified before he left office to keep Clinton from changing it. Clinton changed parts of it to protect more American workers and then signed it.
SHHH, Starbuck, conservatives don't believe in facts or reality... they just need to spew hate and ignorance.
starbuck49
Excuse me, but what does it matter WHO ratified what or when?
If you're NOT buying everything you can that's American made, YOU are part of the problem.
JXC
Who is "spewing hate and ignorance"? ONE poster made a comment about NAFTA. And besides his avatar, what was "hateful"?
Your sentiment is a good one. But realize, the things you buy from China are being commissioned and distributed by American Companies.
If you want to point the finger, point it back at Big Business. It's not China's fault they have cheap labor, but it's is OUR fault we accept the sub-standard products that last a quarter of the time they would if made in the US then pay the same price for them.
When something breaks from China send it back to the company and make them make good. If it takes 100 times make them make good on it until finally they see that we the consumer won't take their cheap junk any longer and pay the same price as if it were made by an American in a Union job.
mj-1451595
I actually search out American made products. I also let manufacturers know my preference for American made products and why. Some manufacturers are starting to realize this and are bringing manufacturing back to this country.
I also refuse to accept sub-standard products. If the product does not meet expectations I DO return it. and I hope that they lose on the transaction. It's the only way to make them wake up.
Henry Ford recognized that to build a product his own employees couldn't afford was poor business. He paid his people enough for them to afford the product.
Granted, there are some products that are virtually impossible to find domestically made, but I buy those only when there is no viable option. I also communicate with the manufacturer my displeasure with that and ask that they at least do some manufacturing here.
If enough people DID that, communicate their displeasure with providing jobs for people in other countries at the expense of American workers, the manufacturers will eventually realize that a dissatisfied customer will buy a competitors product at THEIR expense and that's what matters to them.... market share.
If one actually looks, they can find much, not all, but much of what they need that IS made here. But it means more than just running down to the local big box store to do so.
SAD for employees !! I am a retired Sparrows Point Bethlehem employee worked for Bethlehem for thirty one years. The owners of the plant if I remember right was from germany
we've been sold out. thats what happened. screw globalization. this is one country that has enough natural resources to take care of its own. throw the greedy treasonous cowards out of office. vote anybody other then an incumbant.
ollie-1439784
Ollie... look at the labels in your clothes. Any say Made in America?
Unless you look for the label before you buy, you're part of the problem.
XD
Look on the bottom of your keyboard and tell our inquiring minds where it was made.
starbuck49
It's made in China. Unfortunately.
Until AMERICANS demand otherwise, that's where it will continue to be made. Of course if you accept giving work to foreign workers while your neighbor in this country sufers, what does that say about you?
If enough demand American made products from manufacturers, the manufacturers will comply. Do you believe they are willing to give up market share?
You diss someone else for doing the same thing you do. You must be part of the problem too.
china or some middle east oil rich...at our expense...country..saves on shipping cost but quailty still in question...
Qualitity is important. That's why light manufacturing is coming back from China and IT is coming back from India.
The prices are extremely cheap. Someone could make some real money by buying for high prices and declare bankruptcy and sell to a buddy at a extremely low price. Not saying that's what happened, just saying.
With the steel industry depressed right now, this plant is surplus capacity. Five years ago, it would have brought top dollar, now it brings pocket change. And that "modern cold mill" is useless without a decent hot strip mill to feed it.
Sorry, guys, this place is history. Tear it down.
Bain Capital bought it. Now Romney can come public with his taxes showing he is still on their payroll and doesn't pay any taxes and can leave this place open until 1 day after the elections and claim he saved jobs..... :rolleyes:
you people never give up, do you?
This is the result of Obama's failed policies. If there's no infrastructure being built they don't need the steel.
Bain bought it?
Good.....maybe now it will make a profit and actually stimulate the economy.
Tony, in case you forgot Obama had a bill to rebuild infrastructure and guess who voted it down? The Republican congress. The Republicans are more concerned with getting back into power than they are with the people and jobs and the economy.
Hope and Change = continued job loss & continued imperial warfare.
makes it hard to tell when Bush-idiot ended and Obama-idiot began!
Looks like Bush got a 3rd term. ;)
Generation X and Generation Y are destroying what the greatest generation accomplished.
You should have raised them better, Pappy. The baby boomer generation sat around smoking pot, snorting coke, and pissing away what the "greatest" generation accomplished. Now they are busy sending their grand children off to fight in Vietnam 2.0 while they steal every last dime from the national treasury and wipe their azzes with the US Constitution.
Generation X and Generation Y are destitute from paying the tax bills to support The Greatest Generation living on the SS dole! Screw the "greatest" generation's socialism and imperialism and your attempts to guilt-trip the rest of us over your alleged sacrifice!
Your children the Baby Boomers enjoyed welfare, almost free college and all kinds of government perks before passing their debt on to the X and Y generations. X and Y are trying to work during our 20's while the boomers were going to discos, Woodstock and enjoying free love. by the way X and Y are now paying for the medical expenses for the incurable STD's the boomers got back in the "free Love" 60's and 70's.
PS The USA has not payed off it's debts since 1949. 20 yrs before Generation X was even born.
OK PEOPLE ... we really need to ask ourselves WHY now our steel Mills are being AUCTIONED OFF ???---And to WHO ????
Unfortunately you can't just BLAME OBAMA .. Companies like these have BEEN in financial trouble for years before OBAMA GOT NEAR THE SENATE .. much less the Whitehorse .
And WHEN ARE SOME OF YOU GONNA GROW UP AND FACE THE FACT THAT WE SOLD OUR SOULS TO OTHER COUNTRIES !
If its COST EFFECTIVE they MOVE THEIR PLANTS ELSEWHERE ....
We simply GAVE IT ALL AWAY !
No WE Are JOBLESS , HOMELESS & HUNGRY .......
While the Companies WE MADE RICH Stick it UP OUR A $$ even further and take their BUSINESS OVER SEAS
Just read the feed from the idiot News98 yep it was Obama's fault that when I workeds at Sparrows Point there were 30,000 employees there and in the late 70's Sparrows Point was already losing jobs every year since so guess Obama was to blame back then. My hugh retirement pension that was won by the union is $500 a monthe wonder what Mr.Grace's the ceo back then pension is // Bethlehem went bankrupt while he was the ceo
If there's no infrastructure being built the steel isn't needed. You didn't build that mill Mr Obama but you sure as hell tore it down.
Shame on you and your failed policies.
If you are not rich, thats your own fault....... HAHAHAHA
Its arrogant a s s holes like imrightnotyou who are a MAJOR PART OF THE PROBLEM !
Pricks like you were making it rich off the hard working people and sticking it up everyones A $$ .but dont worry WALL STREET will make sure you day comes too
The American steel industry fell apart in the 70s and 80s. A combination of economic downturn and piss poor management. I know that because my family owned a mill. Now we dont.
cp from PA ding ding ding and we have a Winner .... AGAIN I WILL SAY IT -------
Thank you. People who have no knowledge of the steel industry or of any industry love to pontificate on why it didnt work. They get their info from 2nd and 3rd parties who either have been misinformed or have an agenda. (Ususally a political one)
Nationalists!! Pfft! Why are you all longing for the days when America was independent and great? Those narrow minded nationalistic feelings will get you in trouble. If China or Brazil or Latvia wants to buy the steel mill, who are you to feel bad that America lost another national icon? Who cares if other non-American people buy IBM, Budweiser or the Cleveland Browns for that matter. I'm glad Budweiser is owned by the Belgians. It makes me happy that IBM is owned by China. Small minded nationalistic feelings won't get in my way.
We have no need for legal protections to shield our American business icons. With the rise of all those countries like China and India, to whom we gladly and rightly gave all our technology away, any new legal protective initiative would probably be blocked by international law for our own good to defeat nationalism.
I'm voting for Romney, because he likes the international world of big business like me. Who cares if China or India or Hungary buy the statue of liberty and charge Americans to see it. Because I'm not a narrow-minded little nationalist who thinks the blood spilled by our forefathers is worth one nickel, or yuan, or Euro.
Casual US Taxpayer Because STUPID ..... THAT MONEY DOES NOT STAY IN THIS COUNTRY !
Casual US Taxpayer: Your name says it all. The only reason it is called big business is because inept corporate leaders make deals and policies that only benefit them and other insiders. Which not only hurt their country and impact the lives of many people, in some instances it is against the law. That is why just recently a bill was passed changing the definition of insider trading, not to count past aggressions which claimed ignorance of law or questionable loopholes. Thereby assuring Congress an other influential people would not face felony charges. When the laws don't work to favor Big Business just change or interpret them as needed. P.S. I won't say what I really think of Globalist who depend on war and suffering, along with the raping of a countries resources.
Another Corporate Bain type destruction of a company...Am sure they loaded it with debt prior too filling for bankruptcy and once again the "Working Middle Class Tax Payer" will be the ones ultimately caught holding the bag...
"Double Down Trickle Down Economics" at it's best..
Gotta love them 1% Job Creators....
Maybe one of these days the anger that has built up in America will be directed towards the creators of this mess the 1% instead of fellow Middle Class Citizens........
Yeah.....it's always much better to just let the company fold, not pay its debt and fire everyone versus selling it and giving someone else a chance to rebuild it.
You libs know absolutely nothing about economics or business.
Obamanation1101629
You aren't all as smart in economics as you think you are..
Supply and Demand The demand has to be there before the supply so its not trickle down its trickle up
Guess those shovel ready jobs weren't too shovel ready after all.......
Reminds me of Blue Star Airlines and Gordon Gekko.
If it was ArcelorMittal, it will be gutted and torn down.
Didn't bain buy this company, strip out the employees pension and then bankrupt it?
First off read the story......RG Steal paid Russian steelmaker Severstal 1.2 Billion dollars for the 3 plants just barely over a year ago, Sounds like someone at RG Steal didn't do enough homework and sounds like they overpaid for 3 steel mills that could not sustain it's debt, Obama had nothing to do with it. But to you that blame Obama for this I would suspect that if you bought a house for 1 million dollars and it was only worth 250,000.00 you would blame that on Obama too.
All I'm saying is let's put the blame where it really goes and quit reading your political views into it.
Interesting artical that might enlighten everyone about RG Steel
U.S. trustee objects to proposed RG Steel bonuses
Request could add up to more than $20 million for 10 executives
July 09, 2012|By Jamie Smith Hopkins, The Baltimore Sun
The federal agency that oversees bankruptcy cases is objecting to proposed bonuses for RG Steel executives that could add up to more than $20 million.
The U.S. Trustee Program said in court papers that the request by the Sparrows Point steelmaker, to be split between 10 "key members of the management team," doesn't qualify as an expense that should be given priority. One of the agency's trustees wrote the proposed bonus plan doesn't offer an incentive for the executives to up their performances — only encourage them not to leave before assets are auctioned off.
The bonuses could work out to an average of just over $2 million per executive. The executives would begin receiving the money after the first-lien debt is paid, according to the filing late Friday by Roberta A. DeAngelis, a U.S. trustee based in Philadelphia.
RG Steel, in the midst of laying off about 2,000 employees at Sparrows Point, said in its request that management "is committed to seeing the sale and chapter 11 process through, but deserves a reasonable and appropriate incentive to continue to perform at the highest levels."
Because the company is trying to put the names of bonus-eligible executives under seal, they haven't been disclosed in court filings.
DeAngelis objected to the seal request as well as the plan itself. She said in court documents that RG Steel has already suggested that paying off the first-lien debt would be "easily achievable" because that group of lenders is oversecured — and that would be the threshold to start getting bonus payments.
The proposal appears to be structured "more to induce certain 'key' employees to remain in the Debtor's employ until a sale takes place than it is for the purpose of preserving the value of the estate or increasing the sale price of the Debtor's assets," DeAngelis wrote.
My personal opinion after reading this makes me think an LLC was formed with the intent for Bankruptcy to part it out and pad some pockets, Since it was purchased a little over a year ago.
Probably. Salvaging a sunk cost IS a profitable financial transaction. Despite what all you commie's think, businesses are NOT run for purpose of creating jobs. Jobs are actually an expense and usually a pain in the arse to deal with. "Businessmen" look for opportunities that avoid employees cuz they're such a pain; especially unions. You may not like it or agree with it but that doesnt mean its not reality.
You are correct, my point in my rambling was that so many people are so finger pointing that it's Obama or Romney and if there guilty of it by all means blast them but to say that either was the cause of this is BS.
Either China or Saudi Arabia...only entities with enough expendable income to buy a couple of steel mills. Well, of course, there is also a lot of money still floating around from the bailout. Maybe Wall Street wants to get into the steel business to hide more of that bailout money.
The excutives earned every penny of it to award them to declare bankruptcy so they can go to another company and do the same__big money for them down the road after causing companies to go into bankruptcy. GET A JOB AT BANE
Another 3000 jobs lost ... Add this to the list of Oblahmas terrific accomplishments. Guess the employess that lost their jobs will now go on Unemployment for four years. No matter ---- He doesn't want people to work anyway, just take the Unemployment and Medicaid handouts.
All of you Oblahma supporters, how's this new economy working out for you now. When is enough, enopugh?
Hey J. Matthew try reading the article two posts up and then wipe the diarrhea off your mouth and man up. I don't care if you blame Obama or Romney for anything they had control of, but RG Steel is the only one to blame.
Congratulations Mr. President on fulfilling your promise to "Change"
hankvreeland you need to read my post 3 posts back and you too can wipe the diarrhea off your mouth and man up