Lineas, the largest rail operator in Belgium, will receive a loan for 61 million euros from the state’s Federal Holding and Investment Company (SFPIM). The private company is in dire need for financial help, as the ghost of bankruptcy may be closer than expected.
Lineas has been struggling since after the COVID-19 pandemic. A massive restructuring plan was announced in 2022, but the company still needs liquidity to stay alive and complete it by 2027 as scheduled. According to RTBF, a public broadcasting organisation for the French part of Belgium, documents showed that a bankruptcy could come as early as next month.
The downfall of Lineas
The period during and after the COVID-19 pandemic left a deep mark for Lineas, which has been trying to return to profitability ever since. Bernard Gustin was appointed as the new CEO in 2022, and the restructuring plans was initiated, aimed at making the company more efficient. Non-profitable contracts were dropped and things started to improve. In February 2024, the Belgian government increased its stake in Lineas, via SFPIM.
Currently, Lineas is owned by French investment fund Argos Wityu (55%) and SFPIM (45%) Since 2024, the company received two injections of 60 and 46 million euros from its shareholders, with help coming from the Flanders and Wallonia regions too. The 61 million euros coming from SFPIM might still not be enough. The operator is still looking for additional private partners, as Argos Wityu claimed to be unable to invest further.