Restructuring Administration declares Liberty Ostrava bankrupt

The restructuring administration has revealed that the Czech steelmaker Liberty Ostrava, a subsidiary of British Liberty Steel, is bankrupt. As a result, the company’s previously announced restructuring plan is at risk of failure. This is reported by SteelOrbis with reference to local media.

The restructuring administration has submitted a proposal to the regional court to lift the general moratorium on the company’s debt repayment, and this proposal will be considered on February 28, 2024.

The company, in turn, states that it is solvent and continues to comply with its obligations under the general moratorium. The restructuring plan allows the company to resume operations and repay its obligations to all creditors, including energy supplier Tameh Czech, the Liberty Ostrava spokesperson added.

Meanwhile, the energy supplier refused to consider amending the electricity supply contract, which provides for the supply of electricity at standard market prices.

As GMK Center reported earlier, Tameh has suspended energy supplies to Liberty Ostrava since December 21, 2023, which completely halted the plant’s production. The sole energy supplier stopped operations due to non-payment of bills by LIBERTY.

LIBERTY Ostrava, for its part, has promised to resolve issues with creditors and bring them into line with market conditions. In particular, the company published a production optimization plan, which provided for the launch of blast furnace No. 3 in January. In addition, the company will focus on the production of the most demanded products and the import of some raw materials.

Currently, the plant continues to stand still, and the timing of the restart remains uncertain.

LIBERTY Ostrava is an integrated steel plant with an annual production capacity of about 3.6 million tons. The company primarily serves the construction, engineering and oil and gas industries. The company is a leader in the production of road barriers and pipes on the Czech market. In addition to the domestic market, it supplies its products to more than 40 countries around the world.