The Offer and the Response

SPV nova Hut has made a binding offer to acquire the struggling Liberty Ostrava steel plant. The owner of Nova Hut is Martin Pecina, the former Interior Minister, who has expressed his intention to continue operating the business.

Though,the initial offer was deemed insufficient by insolvency administrator Simon peták. According to Michal Štefl, the spokesman for the insolvency administrator, the bidder subsequently increased the offer by several hundred million crowns. The exact amount remains undisclosed.

Smelter’s Future in the Balance

The spokesperson’s statement indicates a potential risk of the smelter ceasing operations. Negotiations regarding the bidding parameters are ongoing.

But the amount offered was not acceptable, so the insolvency trustee team immediately began to negotiate with the candidate about its further increase.

Michal Štefl, spokesman for the insolvency administrator

Štefl added that after intensive negotiations, the insolvency trustee managed to negotiate an increase in the offer by several hundred million crowns.

Decision Pending

The next steps in the sales process hinge on decisions from the creditors’ committee and the insolvency court.

According to Štefl, the next steps in the sales process depend on the decision of the creditors’ committee and the insolvency court.

Two entities initially entered the tender for Slezská huť, but only one submitted a binding offer in the first round, later increasing it slightly in the second round.

Creditors to Evaluate Options

The creditors’ committee will assess whether to proceed with the sale to the current candidate or to liquidate the plant.

The creditors’ committee will now assess whether to sell the winning candidate or the end of the operation of the HUTI and its subsequent sale in the form of liquidation.

Michal Štefl, spokesman for the insolvency administrator

To aid in this decision, an addendum to the expert opinion has been commissioned.

It should provide the current basis for decision -making,which variants are more beneficial for the property.

Michal Štefl, spokesman for the insolvency administrator

Štefl stated that the outcome of the selection procedure would be published after the creditors’ committee deliberates.

Slezská huť’s Financial Troubles

Slezská huť, part of the Liberty steel Group from the GFG Alliance Group, primarily produced steel for the construction, engineering, and petrochemical industries. However, it incurred significant debt and ultimately faced bankruptcy.

Currently, three plants within liberty Ostrava are sustained through financing from other companies. This arrangement involves “Tolling,” where a company acquires material, provides it to manufacturers, and compensates them for processing.

Despite the ongoing sales process, the Tolling of Vítkovice Machinery Trade (VMT) and Donquixote continues, according to Štefl.

Frequently Asked questions

Who is the owner of SPV Nova Hut?

The owner is former Interior Minister Martin Pecina.

what is the main issue with the offer?

The initial offer was considered too low by the insolvency administrator.

What are the next steps in the sales process?

The creditors’ committee and the insolvency court will make a decision.

What is Tolling?

Tolling is a financing arrangement where a company provides material to manufacturers and pays them for processing it.