PKP Cargo hauler finds it key to stabilise liquidity and repay creditors

"Athe moment, the company is in a state of restructuring, therefore the most critical element is, firstly, to stabilise the liquidity situation and, secondly, to address our creditors with a proposal on how we can satisfy their claims, and our liabilities, which entered the remedial estate at the opening of the proceedings, i.e. July 25 ," said the group's acting CFO Monika Starecka.

"We have the ambition to repay them [the creditors - PAP ed.] as much as possible, well we also have to think quite cautiously, modestly and economically about investments," she added.

Starecka pointed out that probably in the period when the company will be stabilising and until it is in the clear, i.e. when the repayment proposal has been proposed to the creditors and approved, there is nothing to expect significant development investments.

As stated, as far as the provisions related to PKP Cargo's operations and the restructuring programme are concerned, the impact on the accounts should be expected in the second half of 2024.

"At the stage of closing the books for the first six months, we did not have all the data, we did not know exactly how the list of people covered by group layoffs would be finalised. We could not fully and realistically and reliably estimate what kind of provision we should tie up for severance payments and other benefits," PKP Cargo's CFO said.

"At the same time, I would expect that the amounts in their materiality, in their entirety, should be included in the 2024 report," she added.

At the same time, Starecka pointed out that there may be amounts in subsequent years that the company was not able to foresee. However, these amounts are not expected to be material.

"By the end of 2024, we will recognise in our books and establish all provisions related to the restructuring process," she announced.

On September 30, representatives of PKP Cargo in restructuring met with representatives of the trade unions operating in the company. As reported, the key topic of discussion was the course of the process of collective redundancies.

PKP Cargo estimates that after the entire process of collective redundancies, the company will reach an employment level of just over 10,000 people.

The acting CEO Marcin Wojewodka said that all benefits to which employees are entitled, including severance pay, will be paid, although at this point it is not yet known when.

"The company's situation is such that we will not be able to finance all these benefits from our own resources. We will be applying to the guaranteed employee benefits fund FGSP for reimbursement of what we will not be able to pay. This may take time," Wojewodka stressed.

"The company's liquidity situation is as you know it. We will pay everyone what they are entitled to, but we do not yet know when this will happen," he added.

The next meeting of the management board with the trade unions is set for October 21.

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