PKP Cargo Nears Key Phase of Restructuring Talks with Creditors

PKP Cargo reports progress in its court-supervised restructuring process. The company is negotiating with creditors, cutting costs, and aiming to restore stable growth across Europe.

The Polish freight operator PKP Cargo has been undergoing court-supervised restructuring since summer 2024 and appears to have passed the most difficult phase of the process. Since February, the company has been led by CEO Zbigniew Prus, who is simplifying the organisational structure by closing divisions, optimising operational and cost processes, and addressing business segments that have so far generated losses.

PKP Cargo Nears Restructuring Completion, Negotiates with Creditors

According to the Polish financial daily Parkiet, the management board of PKP Cargo considers the main part of the restructuring process to be highly advanced. The process is proceeding according to the schedule approved by the supervising court. The key topic in the upcoming period will be proposals for agreements with creditors.

"We are currently negotiating the final form of the proposals and hope to present their final version to creditors in the near future. Our goal is to conclude agreements with creditors by the end of 2026," said Zbigniew Prus, CEO of PKP Cargo.

Once relieved of its liabilities, the company aims to restore normal operations and regain access to external financing, including subsidies, while gradually rebuilding its ability to service debt. Zbigniew Prus pointed out that failure to reach an agreement would halt the restructuring process and, in practice, make it impossible to satisfy creditors. A constructive agreement is therefore in the interest of all parties.

Last week, PKP Cargo received an order from the supervising judge to extend the deadline for submitting the final version of the creditor agreement proposals. A vote on the proposals is scheduled for 30 April 2026.

PKP Cargo Plans Changes and Return to Growth by 2031

It is widely recognised in Poland that changes in the transport market are forcing railway freight companies across Europe to undergo further deep transformation. Declining volumes of freight transport and transshipment are also among the causes of PKP Cargo’s weak financial position.

"The measures included in the restructuring plan, which was approved by the supervising court on 18 March this year, will be fully reflected in PKP Cargo’s financial performance in 2027. We are simplifying the organisational structure by closing individual divisions, optimising operational and cost processes, and addressing business areas that have so far generated losses," said Zbigniew Prus.

The restructuring plan includes, among other measures, short-term stabilisation of the company’s financial situation through optimisation of cash flows, renegotiation of financial liabilities, cost reduction and revenue growth, including through the development of business cooperation with key customers.

In addition, comprehensive restructuring measures are planned until 2031, alongside further development of the company’s core business, rail freight transport, while gradually reducing activities in declining markets.

PKP Cargo Seeks Billion Compensation from the State

One issue that could provide PKP Cargo with a significant financial boost is its claim for damages against the Polish state. The claim relates to coal transport operations carried out in 2022 on the instructions of the then Polish Prime Minister.

PKP Cargo is seeking compensation exceeding PLN 1.5 billion (approx. EUR 350 million). However, Zbigniew Prus, together with the General Prosecutor’s Office, has requested a suspension of the court proceedings. "This is not about questioning PKP Cargo’s claim against the state, but about gaining time to develop a solution that can be implemented within a reasonable timeframe. The suspension allows for more flexible negotiations," he said.

PKP Cargo is also continuing the sale of decommissioned rolling stock. These are assets that have generated costs for years and no longer have real operational value. The company says that it does not want to invest in rolling stock that does not align with its transformation strategy.

Source: PKP Cargo on LinkedIn