Liberty Steel intends to lease the Częstochowa plant through a subsidiary

Global steel producer Liberty Steel through its subsidiary Poviglio sp. z.o.o. submitted an offer to lease the Częstochowa steel plant in Poland. The proposal includes the provision of immediate financial resources to pay off debts and pay wages to employees for September, WNP.pl reports.

In September 2024, the bankruptcy procedure of the Częstochowa plant was resumed after a short break. In addition to filing for the lease, Liberty Steel is also appealing bankruptcy proceedings. The company said last month that Częstochowa’s creditors had approved its restructuring plan, and it is now awaiting a court decision on whether to approve the plan or continue the search for a new tenant.

«This lease commitment will preserve the value of the company’s assets, avoid the lien of the company’s property and the worsening of the creditors’ situation,» said a spokesman for Liberty Steel.

The company also claims to be the only prospective steel mill tenant that fully understands the complexities of protecting and keeping the facility in good condition before winter hits.

The lease of the plant will be provided by a new management team led by Tomasz Senk, which includes Polish specialists with extensive experience in restructuring.

«After the responsible gradual recovery of the plant, the new team sees significant prospects for sales growth, because Czestochowa is the only manufacturer of plates based on an electric arc furnace with low carbon emissions in the EU. We hope that the plant administrator will approve our proposal as soon as possible, so that we can resume the operation of the plant equipment before the beginning of winter,» said Liberty Steel Europe CEO Thomas Gangl.

The interim administration of the Częstochowa plant has been looking for a tenant since bankruptcy proceedings began in July. Production at the facility was shut down last year under Liberty Steel.

As GMK Center reported earlier, Liberty Steel bought the former ISD Huta Częstochowa, which previously belonged to the Corporation «Industrial Union of Donbass» (ISD), in 2021 for about 190 million zlotys. The company was the only applicant for the purchase of the plant.