Czech Republic-based steelmaker Liberty Ostrava, a subsidiary of UK-based Liberty Steel, has resumed production at its rolling mills, rebar lines and seamless pipe mill, SteelOrbis has heard.
As reported previously, in June this year Liberty Steel decided to initiate the sale of Ostrava’s operations, which face ongoing material risks and uncertainties, and Moravia Steel, the parent company of Czech steelmaker Třinecké Železárny, was considering the acquisition of the pipe mill and the rolling mills of Liberty Ostrava.
Simon Petak, Liberty Ostrava’s insolvency administrator, stated that the resumption of production is expected to result in the company selling the plant with operations still in progress, according to local media reports. Although the company’s creditors have filed claims for more than CZK 23.23 billion ($991.23 million), Mr. Petak has rejected claims worth more than CZK 15.2 billion ($648.59 million) and stated that bankruptcy is a more realistic option than a new restructuring plan.
