Log Out

Md. Gov writes to Sparrows Point lender GE

Fri Dec 30, 2011 2:56 PM EST
, , , , ,
Associated Press
Advertise | AdChoices

ANNAPOLIS — Gov. Martin O'Malley is asking General Electric Co. to help stabilize the financial arrangement that helped build RG Steel in order to prevent layoffs at the company's Sparrows Point steel plant in Maryland.

In a letter dated Wednesday, O'Malley asked General Electric Chairman and CEO Jeffrey Immelt to personally review the matter.

In April, GE Capital, which provides loans and leases to mid-size and large U.S. businesses, loaned $750 million to support the acquisition of three steel companies from Severstal North America to form RG Steel.

But O'Malley says RG Steel's liquidity is now unstable, partly because GE and other financing institutions shifted funds needed to support business operations to reserves. The governor says RG Steel feels the decision has frustrated its efforts to improve its liquidity.

© 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
  • Enjoy this article? Help vote it up the 'Vine.

Back To Top | Front Page

Published to:

Leave a Comment:
You're in Easy Mode. If you prefer, you can use XHTML Mode instead.
Newsvine Privacy Statement
As a new user, you may notice a few temporary content restrictions. Click here for more info.