The Galați court approved an updated capitalization plan for the Romanian metallurgical company Liberty Galați, allowing the process of selling the company through auction to resume. According to the new decision, the auction will take place on June 19 of this year, and the starting prices have been significantly adjusted.
This is reported by Finway
Reduced prices to attract investors
Under the new terms, the starting price for Liberty Galați is set at €444 million, while for the subsidiary Liberty Tubular Products Galați it is nearly €19 million. This change was made possible after a review of the market value of the assets and an expansion of the list included in the capitalization.
Previous auction and investor reaction
The previous sales stage ended unsuccessfully: although five strategic investors from Europe and Asia examined the purchase conditions and visited the facility, none registered for the auction on March 12 or submitted a purchase application. One of the main reasons for this situation was the inflated starting price of €709.1 million excluding VAT, as noted by Remus Borza, president of Euro Insol, which is part of the consortium of administrators for the company.
“At that time, Remus Borza, president of Euro Insol, one of the two administrators of the company, cited the excessively high starting price (€709.1 million excluding VAT) as the reason for this.”
Currently, the Euro Insol – CITR consortium, which is handling the bankruptcy procedure for Liberty Galați, continues to actively promote the assets in the international market. Special emphasis is placed on negotiations with strategic investors, specialized funds, and companies, as well as conducting targeted advertising campaigns in external markets. Before the March auction, a large-scale international promotion was already organized to attract potential buyers directly.