As previously reported by SteelOrbis, Romania’s sole flat steel producer Liberty Galati has been facing a high risk of bankruptcy and was given over a month to present an improved restructuring plan for court approval. This week, the Galati Court approved the proposed plan, and Liberty Galati has started taking steps aimed at improving its financial situation.
However, according to local media, the situation remains uncertain. Concerns persist about the speed of approval and the court’s decisions, particularly as the approved measures appear to be unfavorable to creditors, most notably the Romanian state. The government is seeking to recover debts totaling approximately 1.4 billion lei, both through the National Agency for Fiscal Administration (ANAF) and state loans provided via EXIM Bank.
Additionally, ANAF voted against the restructuring plan once again and is expected to file an appeal. Despite this, the court has shown no urgency in addressing appeals from ANAF and other creditors, with no court date set yet to hear their objections.
In the meantime, Liberty Galati’s financial distress continues to impact its operations. The blast furnace remains idle, and steelworkers are still awaiting their delayed salaries, adding to the growing tension at the plant.