EUROPE: Retrack Slovakia and Retrack Czech have filed for insolvency. Parent company VTG said persistent challenges in the Eastern European traction market made a sustainable recovery impossible, despite its restructuring efforts and financial support.
Retrack Slovakia was founded as Carbo Rail in 2016 through the merger of Carbosped and Rail Sped. VTG Rail Logistics acquired a majority stake in 2020, and integrated it into its Retrack freight business under the name Retrack Slovakia.
Following a decline in the revenues in H2 2024, minority shareholder Rail Services Slovakia decided in January to sell its 40% stake to VTG.
On June 30 VTG said it had subsequently entered into ‘intensive discussions’ with the Retrack Slovakia management regarding a potential restructuring, and provided ‘substantial’ financial support to stabilise operations. However, ‘the persistently challenging traction market conditions in eastern Europe’ meant the economic outlook for Retrack Slovakia materially deteriorated, and it became clear that a long-term restructuring of the company would not be economically viable.
VTG said it had evaluated all available options, but the liquidity situation of Retrack Slovakia worsened to the point where insolvency became unavoidable. Due to financial dependency, this also affects Retrack Czech.
VTG said ‘we deeply regret this development and sincerely hope that a constructive outcome can be achieved for the employees and all stakeholders in the course of the insolvency proceedings’.