Indian conglomerate Jindal Steel Group, one of Asia’s largest steel producers, has reaffirmed its interest in acquiring Liberty Galați following a visit by the group’s chairman, Naveen Jindal, to the Romanian steel plant, according to Romanian media reports.
Jindal Steel, which acquired Liberty Ostrava in the Czech Republic last year, is among the companies that have expressed interest in taking over the former Sidex steelworks in Galați.
Second auction ends without bids despite lower asking price
The development comes after the second auction for the sale of Liberty Galați ended without receiving any bids, despite a substantial reduction in the asking price. The combined starting price for Liberty Galați and Liberty Tubular Products was lowered to €463 million from €709 million, with Liberty Galați offered at approximately €444 million and Liberty Tubular Products at around €18 million. Following the unsuccessful auction, the consortium of judicial administrators, Euro Insol and CITR, stated that discussions with strategic investors will continue.
According to the administrators, the sale process included an extensive international promotion campaign and discussions with several potential investors from the steel industry. “We will continue the dialogue with the investors who have shown interest in the steel plant and are working together with creditors to identify the best framework for reaching a concrete solution. The stakes are too high to stop here,” said Remus Borza, president of Euro Insol. Paul-Dieter Cîrlănaru, CEO of CITR, stated that although the auction concluded without bids, discussions held throughout the five-month sale process confirmed that there is genuine interest in the asset. He added that the administrators will continue exploring all available solutions together with creditors, taking into account the difficult conditions in the European steel market. According to the administrators, potential investors were granted full access to the information required to evaluate the asset, while promotional activities targeted strategic investors across the GCC region, China, India, the US and Singapore, reaching more than 20 million potential investors.
Romanian government prepares alternative restructuring option
Meanwhile, the Romanian government introduced emergency legislation in April allowing the State Assets Administration Authority (AAAS) to take over claims held by state institutions and state-owned banks against private companies considered strategically important. The measure is intended to prevent the collapse of major industrial companies, preserve employment and protect the national economy.
Liberty Galați currently owes approximately RON 4.7 billion (€896.50 million), including nearly RON 1.3 billion (€247.97 million) owed to Romania’s National Agency for Fiscal Administration (ANAF) and Exim Banca Românească. Euro Insol has previously stated that if the sale process continues to fail, AAAS could take over the claims and establish a special purpose vehicle (SPV), into which the plant’s assets could be transferred before bringing in a strategic investor to finance the restart of operations.
Legal challenges add complexity to sale process
Liberty Galați entered preventive restructuring proceedings in March 2025 after facing multiple creditor requests to initiate insolvency. The procedure allows the company to restructure its debts and continue operations while avoiding formal insolvency.
The first auction, held on March 12, 2026, also failed after none of the interested parties submitted the required bank guarantee equal to seven percent of the €709 million starting price. The sale process has also become more complicated following legal action initiated by Liberty Ostrava, which claims Liberty Galați owes approximately €40 million. According to Liberty Ostrava’s judicial administrator, an interim measure issued by the District Court of Ostrava prohibiting the transfer of certain Liberty Galați assets has been registered in the Romanian Land Registry. The judicial administrator stated that the measure covers key production and operational assets at the Galați steelworks and remains enforceable under European law. According to TP Insolvence, any transfer carried out in breach of the court order could be considered legally invalid.
Liberty Ostrava and Liberty Galați were both previously part of Sanjeev Gupta’s GFG Alliance after acquiring former ArcelorMittal assets in Europe in 2019. Liberty Ostrava entered insolvency proceedings in 2024 and its production assets have since been sold to a strategic investor.