A restructuring administrator has found that Czech Republic-based steelmaker Liberty Ostrava, a subsidiary of UK-based Liberty Steel is bankrupt, and so the previously announced optimization plan for the company is at risk of being jeopardized, according to local media reports. On the other hand, a spokesperson from the company stated that the company remains solvent and continues to abide by the obligations of the general moratorium.
The administrator has proposed to a regional court the lifting of the general moratorium on the payment of the company’s debts, and the regional court will hear the proposal with the exclusion of the public on February 28. On the other hand, the company spokesperson stated that the company’s restructuring plan allows it to resume operations and pay off obligations to all creditors, including its energy supplier Tameh Czech. Meanwhile, Tameh Czech is reported to be refusing to consider amending the company’s electricity supply contract, which includes securing energy at normal market rates.
