Liberty Ostrava launches sale of Lihovarská Mine and land in Frýdek-Místek amid bankruptcy

In a significant move amid its ongoing bankruptcy, Liberty Ostrava, once a major steel producer, has initiated the sale of non-essential assets. The insolvency administrator of the bankrupt company, Šimon Peták, announced the transparent sale of the Lihovarská tailings dump in Silesian Ostrava and over 36,000 square meters of development land in Frýdek-Místek. Bidders interested in the properties must confirm their participation by October 7.

The Lihovarská tailings dump, located just a few hundred meters from the smelter’s premises, has been in use since 1958 for the disposal of bulk waste, including blast furnace slag. Initially, Liberty Ostrava had agreed to sell the site for CZK 120 million to FDXX Strategy, a company based in Mikulovice, Jeseníky. However, after receiving multiple offers that exceeded this amount, the insolvency administrator recommended conducting a transparent sale through a public tender.

A recent geological survey, carried out by Talpa-RFP, revealed the presence of almost nine million tonnes of slag at the dump. “Thanks to this survey, we have a clear understanding of what is being sold. We now expect to secure a much higher amount than the previously discussed CZK 120 million, which had been planned under questionable circumstances by Sanjeev Gupta’s board,” Peták stated.

The land in Frýdek-Místek, located in the Lískovec district, consists of 30 plots. According to the zoning plan, these plots are suitable for the construction of family homes and civic amenities.

Peták emphasized the transparency of the sale process, noting that all relevant information, including draft contracts, is available to the public through the insolvency register and Liberty Ostrava’s website. “We are ensuring full transparency to maximize the return for the estate,” he said.

Liberty Ostrava has faced severe operational challenges since June, when it entered bankruptcy. Most of its operations were halted last December due to the suspension of energy supplies by Tameh Czech, leaving a large portion of its workforce idle. In August, the company began the process of shutting down its coking plant and issued termination notices to approximately 1,600 of its 4,000 employees.

The interim creditors’ committee recently approved tolling and loan financing agreements for operations 15 and 16, with Vítkovice Machinery Trade (VMT), part of Jaroslav Strnad’s CE Industries group, acting as the tolling partner.

Liberty Ostrava, once a cornerstone of the Silesian steel industry, has been owned by the Liberty Steel Group, part of the GFG Alliance headed by British businessman Sanjeev Gupta, since 2019. The company primarily produced steel for the construction, engineering, and petrochemical sectors.