Georgetown Steel Gets Bankruptcy Court Reorg OK

October 21, 2004 ( - A US Bankruptcy Judge has approved a business reorganization for the bankrupt Georgetown Steel Co. under which the company would begin paying creditors early next year.

How much remaining creditors will get depends on whether Georgetown Steel receives some money it expects and whether the federal Pension Benefit Guaranty Corp. reduces its $60-million claim for Georgetown’s pension liabilities, said Georgetown lawyer Michael Beal, according to the Myrtle Beach Sun News.The agency claims about a $60 million liability, and Georgetown Steel thinks it should be more like $20 million.

The court approval came exactly a year after the plant shut down and one day short of the anniversary of the date the company filed for Chapter 11 bankruptcy protection.

Bankruptcy Judge John Waites took note of the anniversary and commended the participants for moving relatively quickly in what is a complicated case. “I think you’ve all done an outstanding job,” Waites said.

Beal, told Waites, “I think we’ve accomplished a lot over the course of the past year.” The major creditor was paid, the plant was sold and many workers who were laid off got a new job under new ownership, Beal said. Also there is $12 million on hand to pay creditors, Beal said. .

Creditors will receive their main payments early in 2005 and possible additional amounts when new money is received, according to the newspaper story. Beal said almost 90% of the creditors also voted for the plan.