Bankruptcy court Judge Warren W. Bentz said Monday he is likely to sign an order for the state to fork over Sharon Steel Corp. funds it has been holding for years. But the bigger question remains: Who gets the money? In a hearing in federal court in Erie on Monday, Bentz was told by former Sharon Steel creditor’s attorney Phil Beard, that the Pennsylvania Department of Treasury’s Bureau of Unclaimed Property is holding $479,000 in Sharon Steel funds. The money was issued by UV Industries, which was owned by Sharon Steel, to the Pension Benefit Guaranty Corp., one of the steelmaker’s creditors. PBGC, a quasi-government insurer of the nation’s pension plans, gained oversight of Sharon Steel workers’ underfunded pension plan during the now defunct steelmaker’s second bankruptcy. PBGC eventually decided not to accept the funds which were deposited at the state Treasury Department. The money sat at the state agency for years and was discovered late last year. The Treasury Department refused to hand over the money, Beard said, because it demands a sales agreement be presented showing Sharon Steel owned UV Industries. “That happened in 1979,’’ Beard told Bentz. “A full agreement simply isn’t available.’’ However, Beard said he was able to scrounge up a “small piece’’ of the sales agreement which he offered as evidence. Further, Beard provided federal circuit court documents with judges’ opinions noting that UV Industries was a wholly owned subsidiary of Sharon Steel. Debra Metz, an attorney representing the Treasury Department participated in the hearing by phone. She said she was unaware that the federal court documents had been presented to the agency. The Treasury Department would abide by whatever decision Bentz rendered, she added. “I think you are in a better position to determine ownership than we are,’’ Ms. Metz told Bentz. Beard also said other Sharon Steel funds were discovered in the Treasury Department and those funds should be included in any order. He said a 15 percent finder’s fee would be paid to Lisa McConnell, the Erie businesswoman who discovered the funds. Bentz, who knows the Sharon Steel case well because he oversaw both of its bankruptcies, questioned Beard: “What will happen to the rest of the money?’’ Beard responded that nearly all of it will go for unpaid administrative fees, mostly for lawyers, from Sharon Steel’s bankruptcy case. Bentz said he was likely to sign an order requiring the state to release the funds to an escrow account. But, he told Beard, a separate motion detailing who would be getting the funds, including the finder’s fee will have to be filed. Gene Bianco, the last president of the main United Steelworkers local at Sharon Steel, asked if he could speak. Bianco said UV Industries was — like Sharon Steel — overseen by NVF Corp. or possibly DWG Corp. All three companies were controlled by the late financier Victor Posner. Instead of the money going to legal fees, Bianco said he would like to see it given to Sharon Steel pensioners or to the Sharon Steel Club, a group of retirees. The club could use the money, Bianco said, for such things as short bus trips. He also said the finder’s fee is too high. “Fifteen percent is a lot of money to someone who turned up in the case,’’ Bianco said of Ms. McConnell. “I appreciate your comments,’’ Bentz responded. “Fifteen percent isn’t too much. There would be nothing there without her effort.’’ After the hearing, Bianco admonished Beard and Ms. McConnell. “Don’t try to make friends with me,’’ Bianco told Beard. “I’m against you.’’ The tongue-lashing continued as Beard and Ms. McConnell exited the courtroom and listened to Bianco in the hallway. “For the kind of money you’re making on this, it would take me 15 to 20 years to make that much money,’’ Bianco told them. “This is all bull ...’’ In all, Ms. McConnell said she has found $586,000 of Sharon Steel money in various accounts in Pennsylvania, Colorado, Ohio and New York. “I’m still waiting to find out how much New York has,’’ she said. Able to trace its roots to the 19th century, Sharon Steel had numerous owners and filed for its first Chapter 11 bankruptcy in April 1987 when it was controlled by Posner. Shortly after its main Farrell steel plant was sold to New York investment firm Castle Harlan Inc. as part of the bankruptcy reorganization, the mill entered its second bankruptcy – in November 1992 with the plant closing later that month. During its final days, Sharon Steel employed 2,700 employees, making it Mercer County’s largest employer. Sold a couple times since the second bankruptcy, the plant now operates as Duferco Farrell Corp., which is not involved with the ongoing legal case.