The Restructuring Plan was validated through Decision no. 166 issued by the Galati Court on August 1, 2025, in case file no. 504/121/2025.
The plan, developed by the company in collaboration with the consortium of insolvency administrators Euro Insol and CITR, was presented to nearly 1,200 creditors on July 17 and was approved by three out of five creditor categories.
The restructuring plan targets five key areas: 1- the strategic repositioning of the steel plant to target the Romanian market, 2- enhancing decision-making transparency by relocating all managerial decisions to Romania, 3- optimizing production costs and reducing reliance on specific suppliers, 4- monetizing non-productive and redundant assets, 5 -securing the financing needed to ensure business continuity and future development.
The plan sets out the following:
– full payment of budgetary claims totaling RON594 million;
– full repayment of the loan received from the Romanian State through Eximbank under the Ukraine state aid scheme, amounting to RON708 million;
– full repayment of other secured creditors in the amount of RON93 million;
– full payment of wage claims – including those in Belgium – amounting to RON497 million;
– full payment of essential suppliers, totaling RON173 million;
– payment of RON399 million to unsecured creditors. If financial and accounting indicators perform better than the estimates used in drafting the plan, the recovery rate for unsecured claims could exceed 50%.
“(…) Updating the restructuring plan is a decisive step that not only protects the interests of creditors but also supports a vital industrial ecosystem. Thousands of local suppliers depend directly on the functioning of the plant, and the social and economic impact of its recovery is immense: over 40,000 direct and indirect jobs, and the preservation of a domestic steel source for key sectors such as industry, infrastructure, defense, and shipbuilding. EuroInsol’s experience in transforming Hidroelectrica from an insolvent company into Romania’s most profitable enterprise gives us confidence that we can apply the same strategy and vision here,” said Remus Borza, President of EuroInsol.
The recovery of the Galați Steel Plant is based on a robust financial strategy that combines private capital sources, shareholder support, and the monetization of non-core assets. Substantial negotiations are currently underway with international investment funds as well as Romanian entrepreneurs regarding the capitalization of the company.
“(…) From our experience in restructuring impactful companies, we believe that LIBERTY Galați has all the prerequisites for a sustainable recovery: strategic assets, a solid team, and a steel market that is beginning to stabilize. The submitted plan is based on concrete measures and a realistic financial strategy, combining operational restructuring with the attraction of new capital (…),” stated Paul Cîrlanaru, CEO of CITR.
Liberty Galati, the largest integrated steel producer in Romania, ended 2024 with RON2.1 billion revenue, down from RON3.6 billion in 2023, and losses of RON1.6 billion, lower than in the previous year, Finance Ministry data showed. It had 4,902 employees in 2024, compared with 4,772 in 2023.
Liberty Galati announced in early March 2025 that it would resort to preventive composition amid political upheaval, the new tariffs imposed by the US over steel imports and the lack of real steel industry protection moves at EU level, considering this is the best form to stabilize its business.
The Galati plant, previously owned by ArcelorMittal, was acquired by Sanjeev Gupta, along with six other major steel plants and five service centers in seven European countries, in early July 2019.