Posted on 27 Dec 2023
Liberty Steel Ostrava sold €359mn of carbon credits in August 2022-September 2023, it said in a note to creditors seen by Argus.
The firm bought €183mn of credits over the same period, suggesting it was buying back after previous sales. Liberty had operating earnings before interest, taxation, depreciation and amortisation of minus €236mn in July 2022-October 2023.
In its note to creditors, the firm said it had agreed to a temporary payment plan until 29 February 2024 with a secured creditor with a claim of more than €61mn. It is in negotiations for a longer-term plan and has had talks with other creditors regarding payment plans or deferred payments.
"We would like to assure you that as part of the preventive restructuring, the value of your receivables is not expected to decrease and they will be paid in full, but later than originally agreed or expected," Ajay Aggarwal, president of Liberty's board of directors, said in the note.
Its restructuring plan also envisages a change to its contract with Tameh Czech, which recently filed for insolvency after non-payment from Liberty. The firm said it wants to "revise" the contract to "standard business terms", procuring power at market prices rather than the fixed fee that was previously in place. Liberty had intended to buy Tameh Czech as part of its larger deal to procure assets from ArcelorMittal in 2019, but the deal did not go through.
Liberty intends to repay remaining outstanding amounts within 12 months of April 2024, it said, noting that interest on late payments will not be paid.
It concluded a "memorandum of further steps" on 15 November with strategic investors that will provide up to €150mn via purchases from the company and management of receivables. It also concluded a "memorandum of further steps" for the sale of one of its coke plants on the same day.
Source:Argus Media
