Romania's only sheet steel manufacturer liberty Galati continues its restructuring process, with administrators now preparing a new attempt at an international sale at a significantly reduced valuation to attract investors and stabilize the company's future. The latest developments come as the plant remains largely idle, despite earlier expectations of a gradual resumption of production around April, while uncertainty over the company's long-term prospects continues to weigh on the local market. At the same time, Romanian authorities continue to support the restructuring process with various state-backed measures, as market players increasingly focus on whether liberty Galati will eventually be able to resume operations under a new investor structure.
According to the latest restructuring plan submitted to the Galati court, liberty Galati can now be sold through a new auction, starting at a minimum of 444 million euros, almost half the level of the previous sale attempt made in March, when the company It is reported that it was offered for approximately 709 million euros. This earlier process ultimately failed to attract any binding bids, despite reports of interest from several international investors and steel groups. At the time, market sources indicated that potential buyers from countries such as Turkey, Ukraine, China and India had been linked with preliminary interest in the asset, although the formal acquisition process had not progressed. Market participants largely viewed the previous valuation as unrealistic given the company's financial difficulties, idled production capacity and weak overall outlook for the European steel sector.
Despite the lower valuation and ongoing government support efforts, uncertainty around liberty Galati remains high, especially following fresh reports of the use of financing provided through Romania's state-backed bank Exim Banca Romaneasca. Questions have been raised over how some of the loans intended to support operational recovery and resumption of activities were used, Romanian media reported, with claims that some funds may have instead been diverted to cover arrears and supplier liabilities. Although no official findings have yet been announced, these reports have further weakened confidence among local market players, adding another layer of uncertainty to an already fragile restructuring process.
