GFG Alliance issues update on restructuring and refinancing of Liberty Steel

Tuesday, 19 April 2022 12:19:10 (GMT+3)   |   Istanbul
       

UK-based global industrial leader GFG Alliance and its subsidiary Liberty Steel Group’s Restructuring and Transformation Committee (RTC) have issued an update on Liberty Steel Group’s restructuring and refinancing progress.

Accordingly, the company is taking the necessary steps to close or divest non-core businesses. Businesses that are not viable due to changed market conditions have either been sold or closed. However, the company is restructuring high potential but non-core businesses such as the super alloys specialty steel division in the UK to make them more competitive, and is also looking for new owners or partners for such businesses.

Liberty Steel USA has received $125 million in refinancing through Eclipse Business Capital. The company’s Peoria plant to run at higher capacity utilization and to provide lower-cost supply for its downstream operations. 

In Europe, Liberty Częstochowa has made further progress in its ambition of becoming Poland’s only producer of carbon-neutral greensteel plate with the installation of a 450-kilowatt solar farm on its site. The planning for a second solar farm, which once completed later in the year will provide the plant with around 3 MW of renewable energy capacity, is already underway.

The company’s Tasmanian subsidiary ferroalloy producer Liberty Bell Bay was formally inaugurated this month following investment to repair and restart the smelter’s fourth arc furnace. The business’ alloy sales increased by 18 percent.

Meanwhile, the Commercial Court in Belgium ruled that administrators should be appointed to Liberty Liege. GFG is disappointed by the ruling and will implement immediate remedies in consultation with the administrators, including recapitalization of the balance sheet, and will appeal to the Belgium courts to restore the business to normalcy.


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