A new auction for the sale of Liberty Galați will take place in June

Last week, the Galați court approved a revised plan for the capitalization of Romanian company Liberty Galați’s assets, paving the way for the resumption of the auction to sell this industrial asset. This was reported by G4 Media.

The new auction will take place on June 19 of this year; the starting price for the assets has been reduced and will be €444 million for Liberty Galați and nearly €19 million for Liberty Tubular Products Galați.

This new stage of the process follows a technical update of the market value and a redefinition of the scope of assets included in the capitalization process.

In the previous stage, five strategic investors from Europe and Asia obtained the technical terms for the acquisition; some of them visited the steel plant and participated in in-depth discussions regarding the investment potential. However, none of them registered for the March 12 auction or submitted bids. At the time, Remus Borsa, president of Euro Insol, one of the company’s two administrators, cited the excessively high starting price (€709.1 million excluding VAT) as the reason for this.

In the near future, the bankruptcy administrators of Liberty Galați—the Euro Insol–CITR consortium—will continue their efforts to promote the assets on the international market, as well as negotiations with strategic investors, specialized investment funds, and companies. A large-scale international advertising campaign was conducted prior to the March auction, which included direct contacts with strategic investors.

It should be recalled that earlier, the Liberty Galați restructuring process came under pressure due to new legal complications. The Regional Court of Ostrava (Czech Republic) ruled to impose temporary restrictions on the company’s key assets due to a debt owed to Liberty Ostrava. However, CITR representatives stated, among other things, that the temporary measure is being appealed and, in their opinion, does not halt the bidding process.