2024-07-09 13:36:09
The state should temporarily take over the debt-ridden smelter Liberty Ostrava. In an open letter on Tuesday, Minister of Industry and Trade Jozef Síkela (STAN) called on the Moravian-Silesian governor Josef Bělica (ANO). According to him, a similar solution has already proven itself in the case of the OKD mining company.
On Monday, the trade unions also turned to the government and politicians with a request to actively solve the company’s problems. They suggested that the state, as a significant creditor of the company, should act more forcefully and prepare for its takeover and sale.
“The state took over the enterprise (OKD) in a difficult situation. We believe that this model can be successfully applied in the case of Liberty Ostrava as well. Taking over the smelter temporarily under state administration should not be seen as a last resort, but as an active and constructive step in order to ensure jobs and stabilization of the region,” said Bělica.
According to him, the Ministries of Industry and Trade and Finance should immediately start negotiations with the European Commission on the possibility of a temporary takeover of the smelter by the state, including financial support and the possibility of using European funds. According to Bělica, after the takeover, investments in modernization projects should be ensured, which will lead to greening and increase the competitiveness of the company.
At the same time, the governor requests that the state continue to currently support the employees of the collapsing smelter, of whom approximately five thousand work in the company. The smelter did not pay their wages last month, and the employees receive their compensation from the state through the Labor Office. However, this support is only possible for a period of three months.
“It is necessary to continue the current measures to support Liberty Ostrava’s employees, including the payment of replacement wages through the Labor Office. This approach should be extended until the company is stabilized and a new investor secured,” Bělica wrote to the minister. At the same time, he stated that the insolvency of Liberty Ostrava could have far-reaching effects on the economy of the region and the entire country.
Liberty Ostrava has been in trouble since last year. In December, the company Tameh Czech stopped the supply of energy to the smelters, most of its operations are at a standstill. The majority of employees have been at home since then. The regional court in Ostrava started insolvency proceedings on June 13. The company itself filed for bankruptcy. In it, she stated that she is insolvent and that her obligations after the due date, which she is unable to fulfill, exceed five billion crowns. The court eventually sent Liberty Ostrava into bankruptcy.
A moratorium protected the smelter from creditors until the insolvency petition was filed. First, it was an individual moratorium that was supposed to protect the company from the company Tameh Czech, which supplied it with energy. Then a general moratorium, which ensured the company protection from all creditors for three months. For example, it postponed the maturity of receivables.
Liberty Ostrava produces steel mainly for the construction, engineering and petrochemical industries. Since 2019, the Silesian smelter belongs to the Liberty Steel Group from the GFG Alliance concern of the British entrepreneur Sanjeev Gupta.