Posted on 17 Jun 2024
Liberty Steel has initiated the sales process for its Ostrava steelworks and filed for a judicial reorganisation of the Czech plant to provide protection from creditors and undertake further restructuring.
Since December, the group has “explored every possible option to support and restructure LIBERTY Ostrava so it can be a sustainable business in the face of Europe's highly challenging market conditions,” a Liberty spokesperson tells Kallanish. “However, given the ongoing material risks and uncertainties facing Ostrava, LIBERTY has decided the right course of action is to initiate a sale.”
The firm has withdrawn the preventative restructuring plan in order to enter into the judicial reorganisation under the Insolvency Act.
Liberty’s restructuring plan has been severely hampered by a deterioration of market conditions in Europe, and an indefinite delay in the allocation of emissions allowances from Czech authorities, the firm says. These factors mean Ostrava can no longer satisfy the conditions of the plan.
Liberty says it is confident the judicial reorganisation is in the best interests of Ostrava’s creditors, employees and customers. The firm will continue to maintain the few assets which cover their own costs and support employees in applying for the state Wage Guarantee Scheme.
Source:Kallanish
