PKP Cargo submits revised restructuring proposals to Warsaw court

PKP Cargo, currently undergoing restructuring, has submitted revised arrangement proposals to the District Court for the Capital City of Warsaw. These updated proposals aim to establish rules for the company’s debt restructuring following discussions with creditors and the creditors' council.

A key feature of the new proposal is a mechanism to increase creditor satisfaction using funds expected from a legal claim against the Polish State. The company seeks compensation exceeding 1.5 billion PLN related to the so-called ‘coal decision’ of July 2022. This decision required the carrier to transport coal purchased abroad by PGE Paliwa and Węglokoks, which the company claims caused financial damage by forcing it to abandon profitable commercial orders.

Under the proposed mechanism, PKP Cargo would allocate 50 percent of the funds actually and irrevocably received from the State Treasury regarding this claim toward satisfying creditors in groups I, III, and IV. This mechanism would remain in effect until December 31, 2036, or until the claim is fully settled.

Separately, the District Court in Warsaw has suspended the ongoing legal proceedings regarding the coal decision claim. Both the company’s sanation estate manager and the General Prosecutor's Office, representing the State Treasury, had previously requested the suspension to allow for continued efforts toward an amicable settlement.