Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.
+1 212 318 2000
Europe, Middle East, & Africa
+44 20 7330 7500
+65 6212 1000
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.