The inter-governmental committee set up last September by Romania to tackle the fate of the troubled steel mill Liberty Galati (part of global Liberty Steel, in pre-insolvency), which owes over EUR 400 million to state bodies in tax and other dues, summoned on January 22 – ahead of the January 26 deadline for a final decision on the reorganisation plan. The deadline can be deferred by 30 days.

If it’s not sold quickly this year, it will never be sold (or operating), court-appointed manager Remus Borza said, cited by Digi24, adding that keeping the integrated steel mill in conservation costs EUR 14 million per month.

The committee reviewed the modifications to the reorganisation plan proposed by the tax collection agency ANAF and state bank Exim Banca Romaneasca as main creditors, the government announced in a press release. However, no details on the modifications or a final decision on approving them were released. 

After/if the reorganisation plan is approved, the sale of the company’s assets under an international organisation should take place within 6 months.

The value of the steel mill is estimated between EUR 407 million (liquidation value – as separate assets) and EUR 702 million (going concern value – meaning as a functioning business).

iulian@romania-insider.com

(Photo source: Gov.ro)