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 focuses on five key areas: strategically repositioning the steelworks to target the Romanian market, enhancing decision-making transparency by relocating all managerial decisions to Romania, optimising production costs and reducing reliance on specific suppliers, monetising non-productive and redundant assets, and securing the necessary funding for business continuity and future development.

Remus Borza, President of Euro Insol, said: "Liberty Galați is a strategic company for Romania and Europe, especially given the current geopolitical context. The approval of this restructuring plan is a decisive step that not only protects the interests of creditors but also supports a vital industrial ecosystem. The social and economic impact of its recovery is immense: over 40,000 direct and indirect jobs and the maintenance of an internal steel source for essential sectors like industry, infrastructure, defence, and shipbuilding.”

The plan outlines the full payment of various debts, including RON 594 million (€119.5 million) in budgetary claims, RON 708 million (€142.5 million) for the state aid loan received via Eximbank, RON 93 million (€18.7 million) to other secured creditors, RON 497 million (€100 million) in salary claims (including those in Belgium), and RON 173 million (€34.8 million) for indispensable creditors. The plan also allocates RON 399 million (€80.3 million) for unsecured creditors.

The company is currently engaged in substantial negotiations with international investment funds and Romanian entrepreneurs to secure capital. This integrated approach aims to create a balanced financing mix, combining private capital with shareholder contributions and liquidity generated from the monetisation of non-core assets.