After months of financial, technical, and supply-related problems, Liberty Galati, Romania’s only steel producer, has restarted production, as reported by SteelOrbis. However, the company now faces a major threat of possible bankruptcy due to the lack of full support for its debt restructuring plan.
In March this year, Liberty Galati entered an agreement to avoid insolvency and restructure nearly €1 billion in debt. Although the plan has been approved by most creditors, including state institutions, Romania’s National Agency for Fiscal Administration (ANAF) voted against it. Without ANAF’s approval, the plan cannot be confirmed and the company risks being declared bankrupt on July 7.
This week, Remus Borza, the bankruptcy administrator, and Cornel Moisescu, the company’s deputy director, told local media that bankruptcy would lead to the loss of over 7,000 jobs and long-term damage to the local and national economy. In response, Liberty’s management issued a public appeal for solidarity, asking workers, suppliers, and residents to support the company through this crisis.
The company reports that, following a long production shutdown, operations have resumed and approximately 43,000 tons of slabs and finished products are now being prepared for delivery.
Despite this progress, the company continues to struggle with unpaid debts and salary delays. Supporters of the restructuring argue that ANAF’s vote is harmful and believe that Liberty Galati can recover with state support. On the other hand, ANAF may view the plan as too risky or too lenient on the company.
As July 5 is the final day for ANAF to change its vote, the outcome of this situation will serve as an important test of Romania’s economic resilience and industrial policy.
