PRAGUE (Reuters) - Most of Czech steel maker Liberty Ostrava's 6,000 workers will remain at home for at least a week longer than previously planned with production idled amid a dispute with its on-site energy supplier.
Liberty had intended to restart operations, which were halted last month, on Tuesday but workers will stay at home until at least Jan. 15, a Liberty spokesperson said on Monday.
Energy supplier TAMEH Czech halted supplies of electricity, heat and industrial gases to Liberty on Dec. 21 and declared insolvency, claiming non-payment from Liberty.
"In line with our restructuring plan, renewal of operations depends on reaching an agreement with TAMEH Czech," Liberty said in an email.
The company, which operates in the eastern city of Ostrava and has an annual capacity of 3.6 million metric tons of steel, is part of the Liberty Steel group owned by commodities tycoon Sanjeev Gupta.
Its last operating blast furnace was shut in a hot state in October amid a decline in the European steel market.
Liberty took over the steel mill in 2019 from ArcelorMittal, which had to divest assets under a regulatory ruling.
However, ArcelorMittal retains a 50% stake in TAMEH Czech through Poland-based TAMEH Holding. Poland's Tauron holds the other 50%. ArcelorMittal last week denied it had bought Tauron's stake.
A regional court in Ostrava on Dec. 21 declared a three-month moratorium on all Liberty Ostrava debt repayments and appointed a restructuring trustee.
The decision was based on preventative restructuring and a petition by the company itself.