Liège (Brussels Morning Newspaper) – The Liège Enterprise Court has taken control of Liberty Liège by appointing a provisional administrator to replace Liberty Galati as manager of its Walloon operations, according to union sources on Saturday.
A provisional administrator took over Liberty Liège management at the Liège Enterprise Court due to the removal of Liberty Galati as head of its Walloon subsidiary as reported by union sources on Saturday. The legal professional Roman Aydogdu in Liège will take on the position starting at 28 March 2019 Friday. The Judicial Reorganisation Procedure of Liberty Liège Dudelange from 2021 was already handled by Aydogdu, who now serves as the provisional administrator.
“The court has aligned with us and appointed him to protect the facilities. There is a significant risk that the company may stop paying for electricity. If the power is cut, it will degrade the installations. His appointment will likely last until bankruptcy is declared,”
explains Farouk Chennit of CSC Météa.
This appointment might also be a preliminary step before the Walloon Region takes over management:
“We are reassured that the Romanian company no longer has control; its management will now be in the hands of the administrator,”
adds the regional secretary.
What is the background behind Liberty Liège’s financial struggles?
The European steel manufacturer Liberty Liège exists within the Liberty Steel Group of companies owned by GFG Alliance, which has operated in a state of financial instability for multiple years. Businesses in Wallonia’s steel sector experience significant pressure from mounting energy expenses together with global manufacturing battles and vanishing market demand.
The company Liberty Liège-Dudelange initiated a Judicial Reorganisation Procedure in 2021 to prevent bankruptcy under the leadership of mediator Roman Aydogdu. Although Liberty Liège tried multiple organisational restructures the company’s financial problems persisted because unions consistently reported wage payment delays and production interruptions.
More than 20,000 workers used to be employed in Walloon steel operations, but multiple plants have been closed down over the last ten years. The financial trouble experienced by Liberty Galati (Romania), which operates as Liberty Liège’s parent company, creates doubts about the parent firm’s capacity to back its subsidiaries. GFG Alliance conducted a debt refinancing in 2023, yet its efforts did not stop Liberty Liège from continuing to deteriorate.
The Walloon government responded to struggling steel businesses previously by issuing state-maintained rescue plans. The new court decision may prompt the region to protect jobs and industrial assets since steel production sustains Liège’s economic stability.
