Liberty Galati has announced entry into pre-insolvency process

The decision comes in response to market pressures, including the effects of the Ukraine war, the 25% tariffs imposed by the US on steel imports, high energy costs, and increased steel imports to Europe. The company has announced that they plan to use the loan they expect to receive from the Romanian state bank to restart their operations. This step aims to settle payments to suppliers as well as cover energy bills.

Dan Sandu, CEO of the Investment and Development Bank, has been appointed to the Board of Directors of Liberty Galati by the government to support the company. However, it remains uncertain whether the bank will provide financial assistance. With this decision, the company aims to restart its operations and achieve a sustainable production level.

Radu Ionescu, General Manager of Liberty Galați, stated: “In the current market context, affected by the prolonged war in Ukraine, huge energy prices and cheap imports flooding the European Union, and in the context of the new US tariffs and the lack of real EU measures, the new process will allow Liberty Galati to focus all the financial resources at our disposal to resume operations and increase the production up to a level that is profitable and sustainable going forward.”