Liberty Częstochowa appeals against the bankruptcy court decision

Polish steelmaker Liberty Częstochowa, a subsidiary of global steelmaker Liberty Steel, has filed an appeal against a Częstochowa court decision to initiate bankruptcy proceedings. This is reported by Kallanish.

Liberty, for its part, intends to restart an electric arc furnace with a capacity of 700 thousand tons of steel per year and a rolling mill (1.2 million tons per year). The company believes that it has demonstrated strong support from its largest creditor and has the prerequisites to maintain a €100 million working capital loan from a reputable financial institution.

The restructuring plan envisages the transfer of the plant to the management of the parent company Liberty Steel. While the appeal is pending, the company will continue preparations for the restart and intends to reimburse July salaries to employees if the relevant measures are implemented.

“Restarting the plant is the best way to ensure job security, uninterrupted payment of salaries to employees, ongoing production at the plant and timely repayment of all loans,” Liberty Częstochowa said.

Liberty Częstochowa has been idle for a long time. In March 2024, the company announced its intention to resume production. It was reported that testing of equipment and facilities had begun, as well as negotiations with suppliers of utilities and materials. However, according to Polish media, production has not yet been restarted.

According to the Polish WNP, in mid-April 2024, one of the creditors filed a lawsuit in Częstochowa court to declare the plant bankrupt. In May, the court appointed a temporary judicial supervisor to the company. In June, it became known that the plant might start bankruptcy proceedings due to financial problems. A temporary administration was introduced at the troubled company. At the same time, Liberty Group said it was considering legal options and remained committed to restarting production.

As GMK Center reported earlier, Liberty Steel also had problems with financing other assets in Central and Eastern Europe. These include Liberty Ostrava (Czech Republic) and Liberty Galati in Romania, which resumed operation of blast furnaces in July. The company announced that it plans to sell its troubled steel plant in Ostrava, while initiating bankruptcy proceedings.