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 The consortium previously led by Euro Insol, represented by Remus Borza, has withdrawn.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.


Similar articles

Liberty Galati’s second auction fails as debt burden weakens investor interest

19 Jun | Steel News

Romanian flats spot prices stable amid low demand, Liberty Galati auction unsuccessful

19 Jun | Flats and Slab

Liberty Galati auction attracts GCC interest amid strategic push into EU market

16 Jun | Steel News

Stable HRS prices in Romanian flats spot market, higher CRS prices, amid slow demand

05 Jun | Flats and Slab

Romanian longs prices rise further, market doubtful of sustainability of uptrend

14 May | Longs and Billet

Liberty Galati's restructuring process clouded by new Liberty Ostrava-related complications

12 May | Steel News

Liberty Galati proceeds with revised €444 million sale plan amid financing concerns

08 May | Steel News

Romanian flats spot prices stable, with steady demand, though discounts continue to shape the market

30 Apr | Flats and Slab

Romanian longs spot prices move up amid rising costs and steady demand

30 Apr | Longs and Billet

Romanian longs spot prices pause after gains, with firm demand and higher costs pointing to further increases

24 Apr | Longs and Billet