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Public Statements

Letter to The Honorable Judge Kevin J. Carey

Letter

By:
Date:
Location: Youngstown, OH

Today, Congressman Tim Ryan sent a letter to Judge Kevin J. Carey in relation to the bankruptcy proceedings of RG Steel. Rep. Ryan's letter urged the judge to carefully consider access to the power plant shared by RG Steel and ArcelorMittal as he is making determinations about the conditions of the sale of RG Steel to C.J. Betters, the winning bidder in the recent auction of RG Steel. The text of the letter is below:

August 22, 2012

Judge Kevin J. Carey

824 N. Market Street

5thFloor

Wilmington, DE 19801

The Honorable Judge Kevin J. Carey:

As the U.S. Representative for Ohio's 17thDistrict, I am writing to express my concern over the recent bankruptcy filed by RG Steel and the circumstances surrounding this difficult development for Warren, Ohio and the surrounding region.

In particular, I understand you provisionally approved the sale of the Warren, Ohio RG Steel plant to C.J. Betters Enterprises, Inc. pending a resolution to an objection filed by ArcelorMittal. Based on a 1988 agreement that is still in effect today, RG Steel and ArcelorMittal have been receiving power from the same power plant located near both facilities. There are about 1200 steelworkers who have been affected by the recent shutdown at RG Steel as well as 135 steelworkers at ArcelorMittal who rely on this power plant for their daily work responsibilities.

I also understand you are allowing C.J. Betters a period of nine months to secure financing in hopes of reopening the former RG Steel facility. During this nine month period, any disruption or future stoppage of this facility's ability to access power from the adjacent power plant could put in jeopardy any future financer or purchaser's ability to re-open and provide power. While I understand that you must balance many important concerns, I encourage you to include maintaining access to the power plant in your consideration as you make your final decision.

We are working hard in my congressional district and northeast Ohio to provide good-paying jobs and create win-win situations for everyone involved, especially in difficult times like these. I will also continue to work with my colleagues at the federal, state and local level to provide any incentives we can to make sure the former RG Steel once again provides jobs and proves to be a bright spot for our region.

If you have any questions, please do not hesitate to contact me or Rick Leonard in my Warren, Ohio office at (330) 373-0074 or rick.leonard@mail.house.gov.

Sincerely,

Tim Ryan

Member of Congress


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