UK-based steelmaker Liberty Steel has stated that given the ongoing material risks and uncertainties facing its subsidiary Czech Republic-based steelmaker Liberty Ostrava, it has decided to initiate the sale of Ostrava’s operations and withdraw the preventative restructuring plan in order to enter into a judicial reorganization under the Insolvency Act.
The company had implemented some restructuring plans to restart blast furnace operations in face of the deadlock with its energy supplier Tameh Czech, as SteelOrbis previously reported. However, Liberty Ostrava’s last restructuring plan has been severely hampered by a number of external factors such as a further deterioration of market conditions in Europe and an indefinite delay in the allocation of emissions allowances in the country. These factors mean Liberty Ostrava can no longer satisfy the conditions of the plan.