The Wallonia regional government in Belgium will provide a loan to Liberty Steel to enable the company to continue its activities in Liège-Dudelange for a while until a buyer for the plant is found, according to a statement by the vice president of the government of Wallonia, Willy Borsus.
The Walloon region will grant the loan, which is subject to strict conditions which aim in particular to guarantee the full repayment and the organization of a sales procedure, through investment company Sogepa. By respecting the conditions set by the region, the bankruptcy of the company may be avoided, as SteelOrbis understands.
The plant is in a bad financial condition following the bankruptcy of Greensill Capital, Liberty’s main financial backer, and, according to local unions, there is only one way out of this situation and that is the sale of the plant, as SteelOrbis previously reported.
Meanwhile, the Walloon government is also in talks with Luxembourg regarding the Dudelange plant.