Liberty Galati launches debt restructuring process

Liberty Galati, Romania’s largest steelmaker, has announced that it is launching a preventive process in the face of political changes, high energy prices, steel import tariffs announced by the US and the lack of real measures to protect the steel industry at the EU level. This was reported by the Romanian Business Review.

The company believes this is the best way to stabilize its business.

Preventive composition is a procedure aimed at preventing the debtor’s insolvency by reaching an agreement with creditors. The debtor submits a restructuring plan to the latter, expecting their approval to postpone the debt repayment or partially write it off. The procedure is initiated through the competent court.

As noted, Liberty Galati’s actions are aimed at further building a sustainable business, protecting the company’s future and resuming production operations. This process will have a long-term positive impact on employees, stakeholders and business operations.

According to Radu Ionescu, CEO of Liberty Galati, the new process will allow the company to focus all financial resources at its disposal on restoring operations and increasing production to a level that will be profitable and sustainable in the future.

The preventive process will be implemented with the help of advisors appointed by Liberty – EuroInsol and Sierra Quadrant.

In February 2025, Liberty Galati remained idle for the eighth month in a row. According to the market, the plant was delaying salary payments, its debts were growing, and commercial disputes were multiplying. In particular, more than 50 companies filed lawsuits against Liberty Galati demanding to recover the money owed. Against the backdrop of these events, there was concern that the company might go bankrupt, similar to the situation with Liberty Ostrava in the Czech Republic.