Liberty Galati escapes bankruptcy for now, obtains 30-day legal reprieve to secure creditors’ support

Tuesday, 08 July 2025 14:27:10 (GMT+3)   |   Istanbul

As previously reported by SteelOrbis, Liberty Galati has been facing a high risk of bankruptcy, with a crucial vote from Romania’s National Agency for Fiscal Administration (ANAF) expected to determine its fate. Over the weekend, ANAF’s position remained unchanged, effectively maintaining the company on the verge of insolvency. However, on July 7, the Galati Tribunal granted Liberty Galati a 30-day extension to move forward with its restructuring process and avoid bankruptcy.

As a result, Liberty Galati must now prepare a more viable restructuring plan and seek approval not only from secured creditors but also from all categories of creditors, including unsecured ones. The company has until August 6, 2025, to complete negotiations and gain the necessary support for its revised financial recovery plan. This decision is viewed as a critical opportunity for the sole Romanian steel producer to stabilize its financial position and continue its operations, depending on the success of upcoming negotiations.

Meanwhile, due to ANAF’s continued opposition, leadership of the restructuring process has changed. The consortium previously led by Euro Insol, represented by Remus Borza, has withdrawn. Responsibility for managing the process has now been transferred to Sierra Quadrant SPRL, based in Bucharest.


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