Following recent police raids and the launch of an investigation into fraud and tax evasion, Liberty Galati, Romania's largest steel producer, continues to face a deepening financial crisis. It is reported that the company, which is struggling for survival and facing the threat of bankruptcy, is waiting for government support to avoid a complete shutdown. Despite these difficulties, Liberty Galati's management has expressed interest in a potential acquisition. According to local media, the company has announced plans to acquire Phoenix Slag Services SRL, a company responsible for slag processing operations and equipment management at the Galac steel mill.
Phoenix Slag Services SRL, wholly owned by Phoenix Services Europe Cooperatief U.
A. (The Netherlands) is also one of the largest creditors of Liberty Galati, holding a secured claim worth more than 33 million lei (6.6 million euros). Other key creditors are EXIM, ANAF, Galac Municipality, BRCI, Govcrest International and Aposol SAS, reflecting Liberty's wide range of financial obligations.
Phoenix's financial situation deteriorated significantly in 2024: the company reported losses exceeding 17 million lei after more than a decade of stable profitability. In the previous three years alone, Phoenix recorded a profit of 23 million lei in 2021, 20 million lei in 2022 and 8 million lei in 2023.
As a result, the planned acquisition caused a mixed reaction from market participants. Some interpret this as a strategic step to optimize operations and manage existing intra-company obligations, while others view it as a cautious but difficult financial maneuver amid Liberty's ongoing challenges. Given the company's limited liquidity and limited progress in restructuring or potential sale efforts, the market remains wary, viewing this development as part of Liberty's broader attempt to stabilize operations in challenging economic and financial conditions.
