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Hilco to Assist BDM in Sale of RG Steel Warren Assets

06/03/2013 - Hilco Trading announced that Hilco Warren purchased the steel making assets at the former RG Steel Mill facility in Warren, Ohio, from BDM Warren Steel Holdings.

BDM is an entity formed to acquire all assets of the former RG mill in Warren.
Gary Epstein, chief marketing officer for Hilco, indicated that it is planning an aggressive push to seek buyers for the facility as a whole or in part. “Hilco will run a sale process that will include continuing to market the steel making complex, vetting and evaluating all offers in a private treaty sale,” he said. The Warren Steel Mill which is over 110 years old was sold most recently in September 2012 to BDM in US Bankruptcy Court in Delaware after all steel making work was halted in May of 2012 by its previous owner RG Steel.
“Our goal is to do everything possible to find a purchaser for the facility that can operate the hot mill facility as a going concern,” said Epstein. He further indicated that there may be some precision demolition work completed at the cold mill site, however, Hilco remains focused on finding a buyer, making every reasonable effort to get the hot steel making operation up and running again.
Court documents filed following the bankruptcy last year indicate that BDM was committed to finding a steel making operator to run the facility and included a specific moratorium on the removal or sale of assets at the 1200 acre site for nine months after BDM’s acquisition. Hilco intends to fulfill this obligation and will aggressively seek a going concern buyer for the hot mill. BDM committed substantial capital to maintain the facility throughout the winter of 2012/13 while continuing to market the complex, making every effort toward getting it operational on some scale.
Headquartered in Northbrook, Ill, Hilco is a privately-held, diversified financial services firm whose principal competency is understanding and maximizing the value of business assets, including retail, consumer and industrial inventory; machinery and equipment; real estate; accounts receivable; intellectual property; and, going-concern enterprises. Through 500 professionals operating on five continents, Hilco helps companies and their professional advisors assess asset value, maximize value for said assets through asset monetization solutions, and enhance value through advisory and consulting solutions.