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RG Steel Settlement Approved

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The United Steelworkers (USW) issued a release announcing that the U.S. Bankruptcy Court approved a structured settlement of claims in RG Steel’s Chapter 11 bankruptcy case that gives USW-related entities about 70 percent of the $17.4 million total to be distributed to creditors.

The settlement also includes payments of $2.4 million to a voluntary employee beneficiary association (VEBA) for workers at the Warren mill; $990,790 to the Steelworkers Health & Welfare Fund to cover more than $6 million in claims; more than $814,000 to the Steelworkers Pension Trust; $445,590.31 to a VEBA for workers at Wheeling-Pitt, a predecessor to RG Steel; $480,000 to cover unpaid medical claims; and about $54,000 in severance for workers at an Allenport, PA mill that closed in 2008.

Implementation of this global settlement agreement will lead to dismissal of the Chapter 11 proceeding once all funds from the distribution pool have been distributed or released. Read more mining bankruptcy news.