A London court has decided to grant Luxembourg-based steelmaker ArcelorMittal the right to impose administration for Liberty Steel East Europe, a subsidiary of UK-based steelmaker Liberty Steel Group, due to an unpaid debt, according to media reports. The debt has remained unpaid since February 2023, which seems to be evidence of the company’s financial insolvency.
In 2023, a London arbitration tribunal issued a €140 million deferred compensation award against Liberty Steel Group and Liberty Steel East Europe for the benefit of ArcelorMittal, stemming from ArcelorMittal’s sale of steel plants in Romania, the Czech Republic, and several other European countries to Liberty Steel Group in 2019, as SteelOrbis previously reported.
GFG Alliance, the parent company of Liberty Steel, stated that the ruling will not impact operations, while the administration could result in the sale of Liberty Steel East Europe.