Liberty Galati will seek a buyer at an international auction

Such a sale is considered the fastest way to liquidate a company and settle its obligations

A buyer for Romania’s largest metallurgical company, Liberty Galați, will be sought at an international auction, according to Ziarul Financiar.

The government has approved a proposal to amend the plan submitted by bankruptcy administrators, which aims to sell the company’s core business.

«The liquidation price is €400 million, and the market price is €800 million. We are not going bankrupt, but remain in preventive proceedings. Selling at an international auction is the fastest way to liquidate the company, settle obligations, and cover guaranteed payments, salaries, and part of unsecured claims,» said Remus Borza, president of Euro Insol, one of the company’s administrators.

It should be recalled that in August this year, Liberty Galati’s restructuring plan was approved by the majority of creditors and confirmed by the Galati Court. Among other things, it included the repayment of significant portions of the company’s debt, full payment of wage claims, particularly in Belgium, amounting to 497 million lei, full payment for the services of key suppliers, and payments to secured and unsecured creditors.

In early July, the company resumed operations at its thick plate rolling mill, a key unit for the production of steel for infrastructure, shipbuilding, and pipe products. However, the start of production automatically increased the plant’s daily costs to almost €4 million.