Belgium-based steelmaker Liberty Liège, a subsidiary of Romania-based Liberty Galati, has officially been declared bankrupt by the Liège Business Court due to its inability to raise the necessary funds to maintain its assets during silent bankruptcy proceedings, according to local media reports.
In the coming days, 520-550 employees, who have not been paid for several months, will be laid off and access unemployment benefits. The new administrators appointed a few days ago will try to find a potential buyer for the company, which has been shut down for two years.
“As part of the measures Liberty has taken to restore financial stability at our Galati plant, our Liège plant was placed into provisional administration and will now, under Romanian and European cross boarder regulations, undergo secondary territorial insolvency proceedings in Belgium. Liberty Galati’s assets outside Belgium are not affected,” a spokesperson from GFG Alliance, the holding company of Liberty Steel, told SteelOrbis.