The government is extending support for Liberty Galați employees’ unpaid wages from six months to one year

On Thursday, the government approved the legislative framework allowing unpaid wages to be paid to employees of companies of national strategic interest undergoing preventive concordat proceedings, with the measure primarily targeting the situation of the Liberty Galați steelworks. Through an amendment to Law No. 200/2006, the period during which unpaid wages and other monetary entitlements may be covered by the Guarantee Fund will be extended from six months to one year.

The decision will provide support to approximately 2,400 Liberty Galați employees, while the authorities and concordat administrators continue efforts to identify an investor who can resume production at the steelworks. The announcement was made by government spokesperson Dan Cărbunaru after the meeting at Victoria Palace.

The measure follows the approval, on November 6, of the new restructuring plan by the creditors of Liberty Galați and Liberty Tubular Products Galați. The plan provides for the sale of the steelworks and the Tubular section through direct negotiation, at a starting price of €200 million, excluding VAT. The CITR and Euro Insol administrators say the plan creates the framework for attracting an investor capable of restarting production and securing the future of the Galați industrial platform.