On 25 August 2025, the Insolvency Court approved the sale of Liberty Ostrava a.s. (Liberty Ostrava), one of the Czech Republic’s largest steelmakers, as a going concern. The deal, still pending competition clearance, keeps the plant up and running, securing about 2,500 jobs.
Background
Founded in 1951 as Nová Huť and acquired by Liberty Steel Group in 2019, Liberty Ostrava has long been a pillar of Czech heavy industry. With an annual capacity of up to 3.6 million tonnes and exports to more than 40 countries, the company once employed over 6,000 people. It has also been recognized for its ambitious “Greensteel” project, aiming to cut CO₂ emissions by more than 80% through new hybrid furnaces.
Even so, soaring energy prices and weak steel demand pushed the company into insolvency in 2024. After an unsuccessful attempt at preventive restructuring, Liberty Ostrava was forced into bankruptcy. However, the recently approved sale should ensure the enterprise’s continuation under new management.
Key lessons from the process
Czech insolvency is still largely liquidation-oriented
- Liberty Ostrava is an exception: the administrator kept operations running and arranged a going-concern sale, preserving value and jobs.
Selling a business enterprise as a going concern is possible but rare
- Czech law allows such sales, but creditor approval, court confirmation, and competition clearance are often required.
- Liberty shows that even a major steel plant can be sold this way.
Creditors drive the process, courts mainly oversee
- Courts usually confirm plans approved by the creditors’ committee.
- Understanding creditor influence is therefore crucial.
Find out more
To discuss the issues raised in this article in more detail, please contact a member of our Restructuring and Insolvency team.
