Next year instead of 2036. This is when PKP Cargo claims it can resolve its 2.9 billion PLN (685 million euros) debt which forced it to go into restructuring. It will achieve this through repayments, conversion of debt into equity and debt write-off.
The Polish state-owned rail freight operator has been under restructuring since 2024. The first results of the ‘new’ PKP Cargo were already visible in 2025, when the company returned to profitability after years in the red. The new strategy to get rid of its debt should provide further relief.
Repayments, conversions and write-offs
“The creditors were divided into seven groups, (…) and solutions tailored to the specific circumstances of each group were provided”, PKP Cargo said. For some of them, the solution is debt repayment combined with conversion into equity. In other words, instead of receiving cash back, some creditors will get shares of the company. While doing this, PKP Cargo needs to ensure that PKP, its mother company, retains the majority of shares (33%).
Other creditors will actually get their money back by the end of 2027, PKP Cargo added. This, provided that the creditors accept the arrangement, would be nine years earlier than initially expected. “We were guided by the principle of proposing solutions that are as favorable to the creditors as possible, while also being bearable by the company, within the limits of the regulations”, said PKP Cargo VP Paul Miłek.
The last and third method will be debt write-off. This, the company explained, will mostly concern other companies from within the PKP group. “They are the ones who bear the greater burden of first satisfying the remaining creditors”, said PKP Cargo CEO Zbigniew Prus. In simpler terms, creditors from outside PKP will be prioritised. The approval of this plan by the creditors is expected by the end of this year, the company concluded.