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Sparrows Point auction reportedly delayed for a week

The auction of RG Steel’s plants, including the historic Sparrows Point steel mill in Baltimore County, has been postponed until next week, union officials wrote in an email to membership Tuesday, according to a local news blog.

The Baltimore Brew reported that Joe Rosel, president on Local 9477 of the United Steelworkers Union, sent a memorandum to his members that said the auction of the mill was delayed by bankrupt owner RG Steel for a week in order to find a “stalking horse” bidder for the property.

“The stalking horse bidding process has been extended for an additional week for the Sparrows Point plant and the Warren plant,” The Brew quoted Rosel’s email as saying.

The email was sent Tuesday morning.

Rosel did not return repeated calls for comment from The Daily Record.

Three bidders had reportedly been identified as potential operators or the Sparrows Point mill. They are CSN, Optima Fund Management/Metinvest and Nucor.

The Brew reported that RG Steel was expected to go to auction Tuesday morning if bidders did not step forward for the Baltimore County plant as well as steel plants in Warren, Ohio and Wheeling, W. Va.

“We are still hopeful that a new owner will result from the stalking horse bidding process,” the Brew reported that Rosel’s email stated. “Additionally all of our benefits [health care/SUB, etc] will continue in full effect through this extension.”