ROUGE INDUSTRIES, INC.

Case Highlights

• Directed wind down of large, publicly traded steel manufacturer
• Provided strategy for estate administration, asset disposition and distribution on claims
• Worked with counsel and insurance carriers in regards to employee injury and wrongful death litigation

Case Narrative

Rouge Industries produced high-quality flat rolled carbon steel products, and its customers were primarily in the automotive industry.  After the operations of Rouge and related entities were sold, DSI was appointed as Restructuring Consultant and sole officer and director to oversee and manage the wind down of the debtor’s estates.

Administration of the estates involved coordination of professionals, collection and disposition of assets, wind down of all post-petition operations, avoidance of preferential transfers and significant claims litigation.  Also among the issues confronted were the debtor’s substantial legacy costs and the termination of numerous health and welfare/benefits plans.  DSI worked extensively with the UAW and the PBGC to negotiate a mutually acceptable termination agreement and process.  Additionally, DSI worked closely with counsel and insurance carriers regarding employee injury claims and wrongful death litigation.  In October 2011, DSI, as Post-Confirmation Trustee, distributed a second and final distribution to the unsecured creditors bringing the final distribution to unsecured creditors to 15.3%.