Liberty Galați may be put up for auction again

The asset's initial value may be reduced from €709 million to €444 million

A new restructuring plan for the Liberty Galați steel mill has been submitted to the Galați City Court (Romania). It was filed by two restructuring administrators—Euro Insol and the CITR Galași branch. The document’s key proposal is to sell the enterprise through an open auction. The starting price for the asset has been set at €444 million, according to News.ro.

According to the document, selling the plant as a single property complex is considered the most viable option for preserving production operations and jobs. The auction is expected to attract a new owner capable of providing the necessary investments in working capital and facility modernization.

The €444 million figure represents a 70% reduction from the initial price (€709 million). This amount is the minimum threshold that will allow for partial repayment of priority creditors. The plan provides that the new investor will acquire the assets free of historical debt, which should increase the facility’s appeal to major international players in the industry.

Liberty Galați is in a difficult financial situation due to high debt and unfavorable conditions in the European steel market. Over the past year, the plant has repeatedly faced operational disruptions, particularly due to the shutdown of blast furnace No. 5 and a shortage of raw materials.

Restructuring administrators note that previous attempts at internal financial recovery have not yielded the desired results, so a radical change in ownership is a necessary step to avoid bankruptcy. In addition to the sale price, the buyer’s commitments regarding investments in the “green” transition of production will be taken into account.

As a reminder, the auction for the sale of Liberty Galați, scheduled for March 12, did not take place due to a lack of bids. Five major companies (one Romanian) obtained the technical terms for the acquisition, but none registered for the auction or submitted bids.

As reported by GMK Center, according to estimates by one of the administrators (CITR), the cost of fully restarting the plant in Galați will amount to €200 million. This amount will be added to the sum that the future owner pays at the auction for the sale of the steelmaking company. The sale of Liberty Galați to a new investor will help prevent the decline of one of Romania’s largest industrial facilities.