Judge approves RG Steel retention plan

A Delaware bankruptcy judge has approved a request by failed steelmaker RG Steel to pay more than $750,000 to keep about 20 key employees on the job through the end of the year as the company finishes liquidating its assets. 

 

   The judge approved the retention plan following a hearing Tuesday, overruling an objection by attorneys for the United Steelworkers, who said the payments were unjustified and amounted to a gift for employees who will soon be out of jobs anyway.

 

   RG Steel argued that the workers were essential to the company's wind-down and that without the payments, they may leave early. 

 

   While expressing some concern, the judge said RG Steel was entitled to make such a decision under its own business judgment.