Bankrupt Romanian steel mill attempts to sell assets for EUR 26 mln

Dan Steel Group Beclean wire factory, one of the most important companies in the metallurgical industry in Romania, is to be put up for auction with a starting price of EUR 25.9 mln plus VAT, insolvency firm CITR announced, quoted by Adevarul.

The factory went bankrupt at the beginning of the year, the CITR Cluj Branch informed together with Prime Insolv Practice, as judicial liquidators, specifying that the auction will be organized on April 28, 2023.

The company’s products were intended mainly for the construction and agriculture sectors, as well as for consumer products.

The decline in turnover began in 2017 when the decrease in the business volume led to the reduction of the working capital as well as a significant increase in indebtedness. The measures imposed in 2018 by the European Commission on the imports of certain categories of products belonging to the steel industry forced Dan Steel Group Beclean to secure its raw material within the EU, which created supplementary financial constraints.

Established in 1991, Dan Steel Group Beclean SA had as its main activity the production of ferrous metals in primary forms and ferroalloys (nails, galvanized wire, braided wire, welded mesh, panels, etc.) intended for both the internal and external market (Hungary, Poland, Serbia, Czech Republic, Slovakia).

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