GEORGETOWN— After breaching a contract and failing to pay more than $10 million, Liberty Steel may be forced to use the revenue from the sale of its Georgetown mill to pay its debts, according to court filings.

The mill, once one of the city’s largest employers, was idled last year. In May, the city announced that it would be demolished.

Local officials have said they expect the mill property to be sold to an unidentified developer who wants to put a mixed-use project on the site that could include affordable housing, parks, entertainment spaces and waterfront access.

The proceeds from that sale may be used to pay a debt to Linde Inc. (formerly Praxair, Inc.), an engineering company and industrial gas supplier.

In July, Linde Inc. filed a lawsuit that claims Liberty Steel br

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