PKP Cargo has announced a new restructuring plan aimed at fully repaying its debts by the end of 2027, cutting the timeline from the previously proposed 2036. The plan involves partial cash repayment, debt-to-equity conversion, and a new share issue to raise funds for creditors.
The company argues that a faster exit from the arrangement will restore its credibility and enable access to EU funds and commercial financing. Under the previous terms, PKP Cargo would have remained under the court-supervised restructuring for a decade, limiting its ability to grow.
Paweł Miłek, vice president for restructuring, explained that early repayment offers creditors a better deal. – If we kept the earlier proposals, the main repayment would be in 2036, meaning the company would remain under the arrangement for a decade. From the market perspective, we would not be a fully stable and reliable participant – he said.
A faster path to debt relief
The plan divides creditors into several groups. Small creditors with claims under PLN 50,000 would be repaid in full. Those with claims between PLN 50,000 and PLN 600,000 would receive 50% in cash. Public creditors, mainly tax offices, would get 75%. Entities from the PKP Group and those linked to the State Treasury would have 50% of their claims converted into shares at PLN 12 per share. Financial creditors would see a 50% reduction in debt, with the remainder split between cash and shares.
To fund the cash payments, PKP Cargo plans a new share issue. Series M shares, priced at PLN 1, would be offered to the largest shareholder, PKP SA, and employees. Series N shares, priced at PLN 12, would be offered to existing shareholders with pre-emptive rights. – This issuance is meant to provide the company with the cash needed to pay creditors – Miłek added.
Implications for shareholders
The plan involves significant dilution. The total number of shares could rise from 45 million to as much as 200 million. Some market participants argue that the restructuring comes at the expense of minority shareholders. Miłek countered that the alternative is far worse. – On one scale, we have a company valued relatively low, with about PLN 3 billion in liabilities and no ability to raise financing. On the other, a company that is debt-free, capable of borrowing, and able to pursue EU projects – he said.
He also noted that shares taken by creditors would be subject to a two-year lock-up to prevent a sudden sell-off. After restructuring, PKP Cargo could potentially resume dividend payments. – During the arrangement, especially a ten-year one, such a possibility would be practically excluded – Miłek pointed out.
Future prospects and strategic plans
PKP Cargo sees growth opportunities in intermodal transport and infrastructure projects, particularly the Central Communication Port (CPK). The company is also negotiating a contract to transport aggregates for CPK-related construction. Additionally, it has started a partnership with a South Korean firm to produce trailers for heavy military equipment at its Szczecin plant.
Miłek acknowledged that the first quarter of 2026 was difficult due to severe winter weather, but expressed hope for stronger demand in the coming months. – Urządzenia monitorują wyniki – but the key is saving the company – he concluded.
Źródło: WNP.PL, Fot. materiały prasowe PKP Cargo
