Romania takes steps to secure recovery of claims against troubled steelmaker Liberty Galati

Prime minister Ilie Bolojan set up a committee to follow the pre-insolvency procedures at steelmaker Liberty Galati and its pipemaker subsidiary, Liberty Tubular Products Galati, controlled by billionaire Sanjev Gupta, and protect the rights of the tax collection agency ANAF and Exim Banca Romaneasca as the largest creditors, Profit.ro announced.

The committee is also tasked with establishing measures to reduce the social impact in the event of the reduction or closure of the activities of the two companies and formulating proposals for legislative amendments to protect the state's interests in them.

The state-owned bank Exim Banca Românească and ANAF are Liberty Galati's largest creditors, with claims of RON 708 million and RON 587 million, respectively, summing up to nearly RON 1.3 billion (EUR 260 million), or 27% of a total of almost RON 4.7 billion.

The committee includes deputy prime ministers Marian Neacșu and Tanczos Barna, ministers Alexandru Nazare (finance), Radu Marinescu (justice), and Radu Miruță (economy), the secretary general of the government, Ștefan Oprea, and the head of the prime minister's chancellery, Mihai Jurca.

The Liberty Galati steel mill, formerly Sidex, entered into a preventive arrangement in March, and last month its restructuring plan was approved.

It provides for 100% payment of secured, salary, budgetary, and indispensable creditors' claims, as well as a 25% satisfaction rate for unsecured creditors, which may reach over 50% if financial and accounting indicators evolve beyond the estimates taken into account when drafting the document.

(Photo source: press release)