, the deadline for submitting takeover bids for Liberty Steel has been extended by two weeks to 14 February. “A number of bidders have asked me for more time to finalise their bids, and I have granted them it,” confirms Olivier Wagner, appointed receiver in .
Although he cannot give the names of the groups or companies interested, Wagner does say that “there are candidates for taking over part of the site, others for the site without any activity, i.e., just the machines and installations, but there are also potential buyers with a view to continuing the business with the employees.”
“Historically, there have always been three potential buyers for the site, but the final decision on the case rests with the receiver. His primary objective is to settle the site’s debts and pay the creditors,” adds Robert Fornieri, deputy general secretary of the LCGB trade union.
Organised tours of the site
Although he says he still “believes in it,” the LCGB representative “remains cautious, because even a resumption of activity would not be easy. We’ll have to analyse the conditions under which employees will be able to return to work, and what activities will be carried out on the site. There will also be the challenge of restarting the facilities, which have not been in operation for nearly two years, but which will have to comply with market requirements in terms of reliability.”
Visits to the site have been organised in recent weeks by the receiver for prospective buyers. “The site has not been abandoned, there is constant monitoring, and restarting the business without the current employees would be extremely complicated, as they are the ones with the knowhow and knowledge of the production tools,” says Wagner.
The question of supplies will also be raised in the business recovery files. When ArcelorMittal sold its assets to Liberty Steel, a commercial agreement was reached whereby the group would continue to supply materials to the site in Delange. “Initially things went well, but they ended up in court, with each party accusing the other of not respecting the agreement,” explains Fornieri. “The site has a production capacity of 600 tonnes a year, but the restart, if it goes ahead, will be gradual, of the order of 200 tonnes a year perhaps, to see how profitable it is, and the volumes will be increased as we go along.”
Employees waiting
For the 147 or so employees at the site in Dudelange, “the wait is becoming extremely complicated to manage. It is true that a partial advance on the guarantee of claims in the event of bankruptcy was released in December, just before the festive season, but many families are still facing worrying hardships. The administrative steps to release the remaining amounts have been finalised in recent days, with the support of the OGBL and LCGB unions. However, it is important to remember that in the majority of cases, this guarantee will not cover all the amounts owed to employees,” the unions pointed out in a joint press release published at the end of January.
“This situation is compounded by unequal treatment and administrative barriers. Resident employees benefit from immediate support and assistance from [employment agency] Adem. For cross-border workers, on the other hand, aid received in Luxembourg is deducted from unemployment benefit in their country of origin,” the unions added. “This neutralisation leads to waiting periods and significant reductions in benefits. In addition, many people encounter difficulties with family allowances, which are suspended pending resolution of the bankruptcy. This applies even to periods prior to bankruptcy, and even to situations where the partner is also working in Luxembourg.”
This article was originally published in .