Romanian businessman Dorinel Umbrărescu reportedly ponders taking over steel mill Liberty Galați

Dorinel Umbrărescu, who owns the most powerful Romanian construction group, is interested in buying the steel plant Liberty Galați, owned by Sanjeev Gupta, according to sources familiar with the negotiations consulted by Economedia.ro.

The information was confirmed by the court-appointed manager at Liberty Steel, Remus Borza, who stated that discussions are currently taking place, mainly with Romanian companies, to take over the plant.

"(Dorinel Umbrărescu, nr) is one of the potential buyers. We had discussions," Remus Borza, president of Euro Insol and the one who manages the financial restructuring plan for Liberty Galaţi, told Economedia.ro.

Liberty Galați, owned by Sanjeev Gupta, the controversial Indian metallurgical industry tycoon, is currently in preventive arrangement, a procedure that avoids insolvency, and creditors and the court approved a restructuring plan last month.

Liberty Galați's debts amount to about EUR 1 billion, of which the Romanian state alone has to recover about EUR 500 million - two financing lines granted by the state bank Exim Banca Romaneasca (about EUR 300 million) and the company's dues to the tax collection agency ANAF (about EUR 200 million).

(Photo source: Liberty Galati)