Romanian state-owned freight railway company CFR Marfa has entered the pre-insolvency restructuring process managed by CITR insolvency house, which was appointed by the Bucharest Court to help the railway company recover financially over the next two years, Wall-street.ro reported.

The procedure, encouraged by the European Commission, is aimed at securing the recovery of a company under close monitoring of a syndic judge.

CFR Marfa owes EUR 363 million to the state following a state aid provided by the Government in the past, and over EUR 200 mln to the company that manages the railway infrastructure, CFR, also controlled by the state.

CFR said that it would start procedures to get a writ of execution for the money CFR Marfa owes.

CFR would be willing to take over railway equipment in exchange of the money owed by CFR Marfa, the company’s CEO Constantin Axinia said last October.

Under the pre-insolvency procedure, CITR will draft a recovery plan that will be voted by the company’s creditors.

The plan needs the support of creditors who hold at least 75% of the company's debts.

The term for implementing the measures adopted in the restructuring plan is 24 months.

(Photo: CFR Marfa Facebook Page)

editor@romania-insider.com