The Restructuring Plan of Liberty Galați SA was validated by Decision no. 166 issued by the Galați Court on August 1st, 2025, in case file no. 504/121/2025. The plan, prepared by the company together with the consortium of concordat administrators EURO Insol and CITR, was communicated to 1,200 creditors on July 17th, 2025, allowing them to cast their vote by July 30th, 2025. The restructuring plan was approved by 52% of creditors, while 20% of creditors voted against it. The plan was approved by three out of  five creditor categories.

Concrete Measures for Restarting Production and Ensuring Financial Stability

The Restructuring Plan, approved by creditors and confirmed by the Galați Court, sets out firm measures to restructure both the company’s operational activity and the organizational structure and governance of the companies owned by the shareholder in Romania. The plan focuses on five key areas of action: (1) the strategic repositioning of the Steel Plant and reorientation toward the Romanian market, (2) increasing transparency in the decision-making process and relocating all managerial decisions to Romania, (3) optimizing production costs and reducing dependency on certain suppliers, (4) monetizing non-productive and redundant assets, and (5) securing the financing needed to ensure business continuity and further development.

The restructuring plan includes:

• full payment of budgetary claims totaling 594 million lei;
• full repayment of the loan received from the Romanian State through Eximbank under the Ukraine state aid scheme, amounting to 708 million lei;
• full repayment of other secured creditors in the amount of 93 million lei;
• full payment of wage claims – including those in Belgium – amounting to 497 million lei;
• full payment of essential suppliers, totaling 173 million lei;
• payment of 399 million lei 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%.

Remus Borza, President of EuroInsol, stated: “In the current geopolitical context, LIBERTY Galați is a strategic company for both Romania and Europe. 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.”

Paul Cîrlănaru, CEO of CITR, added: “CITR has a strong track record, with over 1,200 managed projects, including some of the most complex cases in Romania’s recent economic history. 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. We know that such a process requires rigor, transparency, and close collaboration with creditors and potential investors – and this is exactly where our contribution to this project will focus: securing the necessary financing for the successful completion of this project.”

Robust Financial Strategy

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. This integrated approach aims to create a balanced financing mix, combining private capital, shareholder contribution, and liquidity generated through the monetization of secondary assets.

Through this strategy, LIBERTY Galați seeks to establish a sustainable financial platform that will enable the relaunch of operations and strengthen the company’s position amid favorable conditions in the steel market – in the context of the consolidation of the European defense industry, infrastructure development, and the beginning of reconstruction efforts in Ukraine.