Huta Czestochowa lessee moves closer to acquisition

ISD Huta Czestochowa (HCz) lessee Sunningwell International Polska has declared its intention to acquire the heavy plate mill privately after HCz received no bids in its tender sale this week, Kallanish learns.

HCz’s trustee has submitted an application to the Czestochowa district court to confirm the terms of the next tender. The court is expected to announce its decision by 5 June.

The court said in April Sunningwell International Polska has a pre-emption right to acquire insolvent HCz. If another bidder were to win the auction, it would not be permitted to take possession of the mill until the deadline expires for Sunningwell to exercise its pre-emption right, or until Sunningwell waives this right.

Polish steelmaker Cognor and UK-based Liberty House were previously thought to be interested in the Polish steelmaker, while Metinvest, itself a producer of plate in neighbouring Ukraine, was touted as a potential investor.

Electric arc furnace-based HCz has an 800,000 tonnes/year slab capacity and 1.2 million t/y capacity of heavy plate.