PKP Cargo filed updated restructuring proposals with the District Court for the capital city of Warsaw on 30 June 2026, modifying the terms submitted a month earlier. The key change shifts financial creditors from equity conversion to cash repayment, while limiting debt-to-equity swaps to state-controlled railway entities.
The proposals, part of the ongoing rehabilitation proceedings, aim to secure a final arrangement with creditors. According to the company, the revision responds to creditor expectations and is designed to ensure a permanent reduction of debt while maintaining the company’s ability to finance operations and future investments.
Under the updated plan, financial creditors will receive cash settlements instead of shares. The source of the cash portion is the company’s recapitalisation, including share issues approved at the last extraordinary general meeting. Debt-to-equity conversion has been restricted exclusively to state-owned railway entities classified as Group IV.
Six creditor groups and repayment timeline
The proposals divide creditors into six groups, each with different settlement terms. All payments are to be made in a single instalment by the last day of the 12th month following the month in which the court’s order approving the arrangement becomes final. The company expects this to accelerate the repayment horizon and improve the feasibility of the plan.
Prezes Zbigniew Prus, who heads PKP Cargo in restructuring, commented: – The updated proposals are a response to creditors’ expectations. By limiting conversion to entities controlled by the State Treasury and offering cash solutions to financial creditors, the proposals are designed to ensure a lasting reduction of debt while preserving the company’s ability to finance operations and future investments – he said.
Prus added: – Conversion has been applied where it is most economically and systemically justified. For financial institutions, the key was to develop a cash repayment mechanism that increases predictability and acceptability of the arrangement. Our priority was also to shorten the repayment horizon and increase the real chances of implementing the arrangement.
Equity issuance and creditor vote timeline
A core element of the plan is the conversion of part of the claims into new shares. The company’s share capital will be increased by approximately PLN 29 million through the issuance of more than 29 million series D shares with a nominal value of PLN 1 each, at an issue price of PLN 12. The total value of converted claims exceeds PLN 350 million.
The proposals will now be reviewed by the creditors’ council. Due to the changes in their content and the original deadline of 30 June 2026 for issuing an opinion, the company has asked the judge-commissioner to extend this deadline to 31 August 2026. This extension is intended to give the council sufficient time to analyse the revised terms.
The restructuring process is being closely watched by the market, as PKP Cargo is one of Poland’s largest railway freight operators. A successful arrangement would allow the company to stabilise its finances and focus on operational improvements and future growth.
Źródło: wnp.pl, Fot. lumofoto / Shutterstock
