The restructuring plan of Liberty Galati, the largest metallurgical company, was approved by the majority of creditors and confirmed by the Galati Court. This will be discussed in the message of the Liberty group.
As noted, the plan prepared by the company together with a consortium of administrators was brought to the attention of 1.2 thousand creditors on July 17, they voted for it by July 30. Approval was received from 52% of creditors, while 20% opposed it.
The restructuring plan includes, among other things, repayment of significant portions of the company's debt, full payment of salary claims, in particular in Belgium, in the amount of 497 million lei, full payment for the services of the main suppliers and the amount of payments to secured and unsecured creditors.
It focuses on five key areas of action:
strategic repositioning of the plant and reorientation to the Romanian market,increase the transparency of the decision-making process and transfer all management decisions to Romania,optimize production costs and reduce dependence on certain suppliers,monetization of non-productive and excess assets,providing the financing necessary to ensure business continuity and further development.According to Liberty, substantive negotiations are currently underway with international investment funds, as well as Romanian entrepreneurs on the capitalization of the company.
Remus Borza, President of EuroInsol, which is part of the consortium of administrators, noted that in the current geopolitical context, Liberty Galati is a strategic company for both Romania and Europe.
Borza referred to EuroInsol's experience in turning Hidroelectrica from an insolvent company into Romania's most profitable enterprise and the opportunity to apply the same strategy to Liberty Galati.
