Liège (Eurotoday) – The Liège Enterprise Court has intervened in the management of Liberty Liège by appointing a provisional administrator, replacing Liberty Galati as the operator of its Walloon branch, according to union sources on Saturday.
This move follows the court’s decision to remove Liberty Galati from its leadership role, placing legal expert Roman Aydogdu in charge as the provisional administrator effective March 28, 2019. Aydogdu had previously overseen Liberty Liège-Dudelange’s Judicial Reorganisation Procedure in 2021 and now assumes responsibility for the company’s operations in the region.
“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,” stated Farouk Chennit, representative of the CSC Météa union.
Union leaders also view this judicial move as a possible forerunner to public intervention.
“We are reassured that the Romanian company no longer has control; its management will now be in the hands of the administrator,” added the CSC Météa regional secretary.
What led to Liberty Liège’s financial instability?
Liberty Liège operates under Liberty Steel Group, a division of GFG Alliance, which has faced chronic financial challenges for several years. The steel industry in Wallonia, where Liberty Liège is based, has been particularly affected by rising energy costs, international competition, and declining demand.
In an effort to avoid bankruptcy, Liberty Liège-Dudelange initiated a Judicial Reorganisation Procedure in 2021 under the guidance of mediator Roman Aydogdu. Despite several restructuring efforts, continued disruptions in production and delayed wage payments, as reported by employee unions, have worsened the financial situation.
Once employing more than 20,000 workers across the Walloon steel industry, the sector has seen multiple plant closures over the past decade. Liberty Galati’s financial woes further raise doubts about its ability to sustain its subsidiaries like Liberty Liège. GFG Alliance attempted to refinance its debts in 2023, but those measures failed to halt the decline of Liberty Liège’s operations.
In the past, the Walloon government has stepped in with state-backed rescue plans for heavily affected industries. With this new judicial decision, regional authorities may be compelled to act once more in order to preserve jobs and industrial capacity vital to Liège’s economic future.
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