SHARON — Lawyers involved in Sharon Steel Corp.’s bankruptcy have reached a settlement that would give the United Steelworkers $52,447 on behalf of the company’s former union employees and retirees — bu not directly to employees and retirees themselves.

The agreement was struck after union lawyers earlier this week asked other attorneys in the case to remember that Sharon Steel workers suffered the most when the company folded.

“The way they asked us was so nicely put it made us look within ourselves. It proved to be too hard to turn them down,’’ said Phil Beard, a former Sharon Steel creditor’s attorney.

Funds would come from recently discovered money from the defunct Farrell steelmaker that had been sitting in various accounts for more than a decade. Initially, $479,000 was discovered but that figure has now risen to about $590,000, Beard said.

Funds not earmarked for the USW will go to pay unpaid attorneys’ fees and other administrative costs stemming from Sharon Steel’s second bankruptcy.

Bankruptcy court Judge Warren W. Bentz has indicated he is likely to approve the agreement which could come as early as Tuesday. Bentz oversaw both of the steelmaker’s bankruptcies.

However, even if Bentz OK’s the settlement, interested parties can file an appeal within 10 days of his order.

USW attorneys acknowledged that while former union workers have $4.2 million in unpaid claims against the company they probably weren’t entitled to the money since there are outstanding legal bills. Under the federal Bankruptcy Code administrative fees and legal bills have a higher priority in getting paid. In this case the fees exceed the amount of the discovered funds.

“With a claim of $4.2 million we realize this is a symbolic thing,’’ Beard said.

Gene Bianco, the last president of the main USW local at Sharon Steel, attended a hearing earlier this year and pleaded with Bentz to give union workers something out of the funds.

“Not bad,’’ said Bianco upon hearing about the settlement on Friday. “At least we’re getting something.’’

A more interesting decision awaits.

If everything falls into place and the USW gets the money, the union must then determine where it will go. The final decision rests with the International USW based in Pittsburgh.

Johnny DeFazio, a USW district director whose territory covers Mercer County said Friday he was unaware a deal had been reached.

“Our legal department is going to have to get together and figure out what to do with the money,’’ DeFazio said.

Bianco and DeFazio agree on one point: There is no way any individual will get the money. Bianco conservatively estimated there are 3,000 former Sharon Steel union workers and retirees.

Using that figure means an individual would get less than $18 — provided they all could be found.

“It’s just not possible to find all those people,’’ Bianco said. “Even if it were possible the expense at finding every single person would chew up all of this money.’’

With Sharon Steel long since gone trying to find former workers and retirees scattered throughout the county would be impossible, DeFazio said.

“I just don’t know how you could do that,’’ he added.

DeFazio suggested the funds be used in a useful way.

“It would be nice to do something with it which could help everybody in some way,’’ he said.

One idea touted by Bianco is to give the funds to the Sharon Steel Retirees Club, a local group comprised of former Sharon Steel union workers.

“Maybe the club could use the money to take people on a short trip,’’ Bianco said. “But I’ve told the International (USW) that I will have no role in determining how this money will be divvied up.’’

Sharon Steel had numerous owners and filed for its first Chapter 11 bankruptcy in April 1987 when it was controlled by the late financier Victor Posner. Shortly after its main Farrell steel plant was sold to New York investment firm Castle Harlan Inc. as part of that bankruptcy reorganization, the mill entered its second bankruptcy in November 1992 and the plant closed 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.