Feds sue RG Steel owner for $97M in pension funds - WOWK 13 Charleston, Huntington WV News, Weather, Sports

Feds sue RG Steel owner for $97M in pension funds

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WHEELING, W.Va. (AP) - An agency tasked with protecting retirees' pensions is suing the owner of bankrupt RG Steel.

The Pension Benefit Guaranty Corp. is seeking $97 million in a federal court in New York to cover unfunded liabilities and plan contributions.

Renco Group allegedly dumped 24.5% of its ownership before the May 2012 bankruptcy, selling out to Cerberus Capital Management solely to avoid its pension obligations to more 1,350 retirees.

That cut Renco's ownership below the 80% threshold that makes it liable for the pensions under federal law.

Renco spokesman Andrew Shea tells the Wheeling News-Register (http://bit.ly/X8DrnS) the case is "baseless."

Renco formed RG in 2011, combining assets from the former Wheeling-Pittsburgh Steel with Bethlehem Steel's former Sparrows Point mill in Baltimore and the former WCI Steel plant in Warren, Ohio.