In practical terms, the Polish rail freight operator is asking creditors to accept a package that combines cash repayment, conversion of some debt into shares, and partial debt cancellation.
The plan covers debt of about EUR 680m. PKP Cargo says the revised proposal would settle the arrangement by the end of 2027, instead of the earlier 2036 horizon. That is the core change: creditors would receive value sooner, but not necessarily all in cash.
The debt would be handled in three ways. Some claims would be paid in cash. Some creditors would receive equity in PKP Cargo instead of repayment. Part of the debt would be written off, mainly within the PKP Cargo Group, meaning related companies would absorb a larger part of the reduction than external creditors.
Creditors have been split into seven groups under Polish restructuring law. Each group will receive different terms depending on the type of claim, whether it is secured, when it is due, and its legal position in the proceedings. The next step is a creditor vote, which PKP Cargo says should take place by the end of 2026.
The proposal is tied to a capital increase. PKP Cargo plans one share issue at the end of 2026 and another in the first half of 2027. The package includes an issue to Polskie Koleje Państwowe so that the state-owned shareholder can keep its 33% stake, warrants for employees, and an issue offered first to existing shareholders.
For the rail freight market, this means PKP Cargo is trying to exit restructuring by reducing balance-sheet debt rather than carrying the burden until the mid-2030s. For creditors, the trade-off is speed versus form of recovery: earlier settlement, but partly through shares and write-offs. For shareholders, the planned issues mean dilution risk, although PKP Cargo says the structure is intended to preserve the current control position of PKP.
