LIBERTY reaches Standstill Agreement with its largest creditor, Greensill Bank

LIBERTY Steel Group (“LIBERTY”) has today entered into a Standstill Agreement (“the agreement”) with Greensill Bank, its largest creditor, on the debt facilities relating to its European steel businesses.

Under the agreement all enforcement actions are paused between the parties over the Greensill Bank debt facilities provided to LIBERTY in 2019.

The agreement shall enable LIBERTY to develop a longer term sustainable financing structure. The agreement is valid until 31st October 2022 and may be extended until the end of 2022.

Detailed due diligence and information exchange continues between the two parties.

A LIBERTY Steel Group spokesperson said:

“Today’s standstill agreement with Greensill Bank demonstrates we are getting close to a consensual debt restructuring that is in the best interests of all our stakeholders.

We are working intensively towards a settlement with our major creditors in a timeframe which would obviate the need for a legal battle. Our core businesses continue to perform well and are operationally strong despite some economic headwinds.”

Ajay Aggarwal, President of LIBERTY Steel Group Europe and Chairman of the Board LIBERTY Galați, said: LIBERTY’s core global operations continue to perform solidly, with LIBERTY Galati doubling its annual turnover to RON 9.3 billion, achieving EBITDA of RON 1.7 billion and delivering a net profit of RON 1.36 billion the year to 31 December 2021. I believe that showed the results of the turnaround progress we have made at LIBERTY Galati, which achieved the best financial, operational, and management results in more than a decade.

Sandip Biswas, Chief Investment Officer GFG Alliance and Interim CEO for LIBERTY Primary Steel and Mining, added: “LIBERTY Galati’s strong performance in 2021 was driven by capitalizing on the favourable market conditions, achieving record-production volumes and increasing the quality of its products and service. LIBERTY Galati’s improved commercial and operational structure will help the business navigate the challenges of 2022, including the impact of the war in Ukraine, higher working capital needs, increased costs of distribution and logistics and continuing high levels of imports from outside the EU. Although, the business is operating in a more challenging economic and geopolitical context, we remain confident that LIBERTY Galati will overcome the current market challenges.”