Creditors and the court agree on the restructuring blueprint for Liberty Galatъi, the Romanian steel manufacturer.
Liberty Galati, a steel plant located in southern Romania, has unveiled a comprehensive restructuring plan aimed at stabilising its financial situation and ensuring continued growth. The plan, approved by 52% of the company's creditors last month, focuses on restructuring both operational activity and organisational structure of the companies owned by Liberty Galati's shareholder in Romania.
The plan involves significant debt repayment, although the specific amounts for different categories of creditors are not detailed. However, full wage settlements are included, with a notable payment of 497 million lei in Belgium. Complete payments to key suppliers are also part of the plan, indicating a focus on maintaining supply chains and relationships.
The plan emphasises integrating private capital, shareholder contributions, and liquidity from secondary asset monetization to stabilise the company's financial framework. The restructuring strategy includes measures in five key areas: strategic repositioning of the steel plant, increased transparency, production cost optimization, monetization of non-productive assets, and securing financing.
Remus Borza, President of EuroInsol, highlighted the importance of the steel plant in southern Romania. He stated that it supports thousands of local suppliers and preserves a domestic steel source for key sectors. Negotiations with international investment funds and Romanian entrepreneurs are underway for the capitalisation of the company.
The recovery of the steel plant could save over 40,000 direct and indirect jobs. The company's goal is to consolidate itself for future participation in key industries such as defense, infrastructure, and shipbuilding. The plan also includes the repayment of a loan received from the Romanian state through Eximbank under the Ukraine state aid scheme, amounting to RON 708 million (EUR 139 million).
The restructuring plan for Liberty Galati was validated by the Galati Court on August 1, 2020. The press release from administrators at EuroInsol and CITR emphasised the steel plant's significance. The available information does not provide a detailed breakdown of the debts to be paid by Liberty Galati in their restructuring plan, specifically in terms of amounts for secured creditors, suppliers, unsecured creditors, and wage claims. However, the restructuring plan is designed to stabilise Liberty Galati's financial situation, ensuring continuity and development through strategic measures.
- The restructuring plan for Liberty Galati, approved by creditors, focuses not only on operational restructuring but also includes the integration of private capital and finance, as well as the monetization of secondary assets, to stabilize the company's financial framework.
- The recovery of Liberty Galati could have a significant impact on the regional business landscape, as it supports thousands of local suppliers, preserves a domestic steel source for key sectors, and could save over 40,000 direct and indirect jobs, positioning the company for future participation in industries like defense, infrastructure, and shipbuilding.
