PKP Cargo hauler to apply for max. PLN 100 mln employee guarantee fund aid

Listed rail hauler PKP Cargo will apply for maximum PLN 100 million (EUR 23.2 mln) aid from guaranteed employee benefits fund FGSP, the group said in a market filing.

"Because of the prolonged tough financial situation of the company, the management board has decided to halt the payment of cash benefits (...) and in this situation to apply for aid from FGSP fund," the company wrote.

The hauler reported that 2,215 employees were covered by the collective redundancies, with the estimated costs amounting to approximately PLN 113.25 million (EUR 26.3 mln).

"The FGSP aid will cover about 65 percent of the group's financial obligations towards employees stemming from termination of contracts in the context of collective redundancies," PKP Cargo pointed out.

"As part of the application for payment of benefits from the FGSP, the company also takes into account employee claims for unpaid holiday of maximum PLN 25 million," it added.

PKP Cargo stressed that funds raised under the FGSP are refundable.

"The company's management board intends to request the supervisory board to give its opinion on the proposal in question and the remedial estate administrator to submit the proposal on behalf of the company," the filing concluded.

seb/ mik/ ao/