BDZ will Restructure Freight Unit

BDZ will Restructure Freight Unit
September 5, 2010 4:40 pm

Bulgarian state railways company BDZ will restructure its freight unit, BDZ Tovarni Prevozi, ahead of selling a stake in the company.

The Bulgarian Ministry of Transport said the unit cannot currently be sold as its assets are owned by its parent company, and investors will not come forward to purchase the operations and the company’s debts.

The ministry plans to transfer the assets of BDZ Tovarni Prevozi and BDZ’s passenger transportation unit, BDZ Patnicheski Prevozi, to its subsidiaries, leaving only the parent company for strategic planning and financial oversight.

But such a transfer still needs the approval of the state railways creditor banks. BDZ is seeking a loan of about BGN460m ($322m) to help finance debt payments and cover operational needs.

The restructuring plan is the outcome of BDZ’s negotiations with the World Bank and the European Bank for Reconstruction and Development for raising the loan.

Germany’s Deutsche Bahn and Austrian rail freight transportation company Rail Cargo Austria had earlier expressed interest in BDZ’s freight unit. is a railway information and news platform. Website presents from all around the world railway sector news, developments, projects and tender for the sector specialists. Railwaynews supports to industry events and announced them for potential participants. Railwaynews plans to collecting data from all around the world, about railway infrastructure, rolling stock, railway transportation datum, geographical datum to present for railway professionals for short term. Railwaynews will build new platforms aims to high value railway business environment for all railway specialists, railway fans and especially railway suppliers and their decision makers. Railwaynews presents whole information from rail professionals to rail professionals.

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