Romanian steel producer, Liberty Galati SA’s restructuring plan has been approved by the Galati Court, following a 52pct vote in favor from creditors. The plan, developed with administrators EURO Insol and CITR, aims to revive operations and strengthen the company’s financial foundation.
The strategy targets five key areas: refocusing the steel plant on the Romanian market, centralizing management decisions in Romania, cutting production costs, monetizing non-core assets, and securing financing for long-term continuity and growth.
The plan ensures full repayment of key debts, including RON 594 mln (USD 135 mln) in budgetary claims, a RON 708 mln (USD 161 mln) state loan via Eximbank, and wage and supplier claims totaling over RON 1.1 bln (USD 250 mln). Unsecured creditors are set to receive RON 399 mln (USD 91 mln), with potential for a higher recovery if performance exceeds forecasts.
Liberty Galati’s revival hinges on a mix of private capital, shareholder support, and asset monetization. Talks with international funds and local investors are ongoing to secure the necessary funding. The company aims to capitalize on favorable market dynamics, including rising steel demand from defense, infrastructure, and Ukraine’s reconstruction efforts.
Liberty Galati has an annual production capacity of 3 mln tons of steel. The company specializes in manufacturing flat steel and tubular products.
1 USD / 4.38 RON
