PKP Cargo hauler restructuring plan will not be ready by deadline

Listed rail hauler PKP Cargo's restructuring plan will not be ready by October 25, the deadline indicated by the court, acting PKP Cargo CEO Marcin Wojewodka told PAP. He added that, according to talks with the company's manager, the plan will rather be presented at the turn of 2024 and 2025.

"Intensive work is going on at the moment, while we have to clarify it that, to the knowledge of the management board, on October 25, when the three-month period indicated by the court for the presentation of the restructuring plan expires, it will not be ready and submitted to the court by the sanitation administrator," Wojewodka, acting PKP Cargo CEO told PAP.

He explained that the preparation and publication of the restructuring plan is the responsibility of the executive manager appointed by the court. He pointed out that the company's management is in full dialogue with the administrator and provides him with all the necessary information on an ongoing basis, and that the cooperation is going very well.

"It's a lot of different tables, calculations, documents, and I would expect - this is the result of discussions with the administrator - that the restructuring plan will be ready rather at the turn of 2024 and 2025. Then this plan will be submitted to the court," CEO said.

He pointed out that the key challenge for the company at the moment is to maintain liquidity in order to pay for the services the company buys, pay salaries and pay other current obligations. This means that the company has to earn adequately, but also cut costs all the time. He added that this is one of the most difficult, but most important decisions to make.

"We have been doing this consistently for six months now, and we will continue these actions with full determination," Wojewodka declared.

He explained that the restructuring plan will indicate specific actions that PKP Cargo intends to take in the next few dozen months, including real estate, rolling stock, acquiring new contracts, employee issues and changing organisational structures. These actions, he said, are expected to help the company recover from the crisis and pay off at least some of the debts inherited from its predecessors.

"In June 2024, the company was in a dire financial situation. It was a loss of several hundred million, which we reported as at 30 June, which is why we had to apply for sanitation at the end of June.

This was successful, today we are still at the bottom, but as I said, we have turned the switch, and now we are calmly, responsibly, organically repairing the company in various areas and processes," he added.

He stressed that all measures are taken by the company "in social dialogue with social partners".

bpk/ malk/ js/ doa/ nl/