Poland's defence ministry to exercise its right to buy Huta Czestochowa smelter
The minister of national defence will exercise his right to buy out the assets of Huta Czestochowa smelter; a letter to this effect has reached the court, judge Dominik Bogacz, spokesman for the Regional Court in Czestochowa, told PAP on Monday. According to bankruptcy law, the price will be determined on the basis of an expert opinion.
This follows the situation on February 17 this year, when a tender for the sale of Huta Czestochowa's assets was to be held in the Czestochowa court. However, the court adjourned the hearing at the request of the plant's receiver. This was because the receiver had asked the government whether the State Treasury intended to buy the steelworks directly in connection with its inclusion on the list of strategic enterprises.
One of the points of article 311 of the bankruptcy law provides that the State Treasury, represented by the Minister of National Defence, shall have the right to buy out assets serving to carry out activities in the field of defence and national security.
The defence minister then submits a declaration to the bankruptcy judge that the right of redemption has been exercised.
"The buyout shall be made at a sale price determined on the basis of expert evidence, but the price shall not be less than the amount obtainable in bankruptcy proceedings in liquidation under the general rules, less the costs of the proceedings that would have to be incurred in connection with liquidation under such procedure," article 311 presupposes.
The costs of this expert opinion shall be borne by the Treasury.
The receiver's question to the Ministry of National Defence had to do with the inclusion of Liberty Czestochowa in bankruptcy, the owner of Huta Czestochowa, on the list of strategic companies and thus placing it under state protection. The Council of Ministers adopted an amendment, prepared by the Minister of State Assets, to the regulation on the list of entities subject to protection and the control bodies competent for them on February 11 this year.
"The company is of vital importance to state security - as the only metallurgical plant in the country, it has the technological capacity to produce hardened thick plates for the defence industry. It also has one of the largest production halls in the EU, which enables, among other things, the overhaul of military equipment," the Chancellery of the Prime Minister (KPRM) stressed in the statement on February 11.
Huta Czestochowa has so far been operating on the assets of Liberty Czestochowa sp. z o.o. in bankruptcy. An agreement was reached with the receiver on the lease of the assets of the steelworks on November 19, 2024, by Weglokoks, which then restored production at the steelworks on January 20 this year, and at the plate mill on February 4 . Weglokoks, as the tenant, had the right of first refusal and declared its willingness to purchase the assets of the smelter.
As the deputy CEO of Weglokoks and the CEO of Huta Czestochowa Adrian Sienicki said after the start-up of the steelworks, the plant was still expected to produce around 10,000 tonnes of steel in January (with a view to the subsequent start-up of the rolling mill) and to increase production to 45,000 tonnes per month around the middle of the year.
At the end of October last year, the Czestochowa court finally dismissed a complaint against the declaration of bankruptcy of the smelter's previous owner, Liberty Czestochowa. This is the bankruptcy of another private owner of the plant.
Production stopped at the plant at the end of 2023, but the employer was paying salaries to the crew until the end of August 2024. After leasing the assets of the smelter, Weglokoks settled the arrears and restored production.
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