Liberty signs management contract for Dunaferr: sources

UK-owned Liberty Steel may have signed a three-month management contract with the liquidator of Hungarian steel producer Dunaferr to run the beleaguered company, according to sources.

Liberty declined to comment while the liquidator did not return repeated requests for comment.

Argus revealed in December that coal from Liberty Steel was being railed to Dunaferr to keep the plant's coke ovens running.

During the same month, Hungary amended its bankruptcy legislation, meaning that Dunaferr could enter liquidation and be sold. Ukrainian steelmaker Metinvest wrote to the Hungarian government in mid-December, declaring its interest in the facility. Metinvest is seeking outlets for its raw materials, as well as captive slab for its European rolling assets, given reduced domestic output.

Liberty has also expressed its interest in acquiring the site. Liberty head Sanjeev Gupta met with Hungarian politicians with a view to buying the business shortly before the failure of its main financier, Greensill.

Liberty has been in talks with the Hungarian government this month. A delegation from the company visited the plant earlier this month, where the temporary management contract was originally signed. Liberty has established a legal entity in the country, Liberty Central Europe, as reported by Argus.

By Colin Richardson