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Posted: 5:13 p.m. Tuesday, July 24, 2012
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By NEWS9
STEUBENVILLE, Ohio -- Members of the United Steelworkers Union voiced concerns Tuesday over the listed and actual sale prices of the Steubenville North plant sold by RG Steel.
"A lot of them came in and were concerned that there was such a discrepancy in the announced sale price and the actual sale price," said USW Local 1223 President Jerry Conners. "There were reports that went out last week for the sale of Steubenville North that the sale price was $4.3 million and there were documents online connected with the bankruptcy signed by the purchaser and the seller, and also signed off by the bankruptcy judge, that lists the sale price at $15 million."
James Companion, a Wheeling attorney who prepared the Limited Warranty Deed in Jefferson County, explained to NEWS9's Kelly Camarote by phone that the $4.3 million was only one of three components of the total sale to River Rail Development.
The other two components consisted of scrap metal and equipment.
Companion said transfer taxes must be paid on the property worth $4.3 million, but the buyer will not pay taxes on the scrap metal or the equipment.
"I believe the sale was supposed to go through last February about the same time that RG Steel sold the Allenport plant but I believe there were some environmental concerns and it dragged on," said Conners. "It had not been closed by the time it went to bankruptcy, and once they went to bankruptcy, it had to go through the court before it was approved."
Bidders interested in purchasing other RG Steel assets must submit final offers to RG Steel in bankruptcy court tomorrow by 12 p.m.
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