The European Commission (EC) has rejected last week the restructuring plan of HZ Cargo, Croatia’s state-owned rail freight operator, reports the Vecernji list publication. The representatives of DG Competition held a meeting with the Croatian Minister of Maritime Affairs, Transport and Infrastructure Oleg Butkovic and requested a new restructuring plan for the company by mid-June.
The new document should convince DG Competition that HZ Cargo will be able to survive on a liberalised rail freight market without government support.
Fresh capital for HZ Cargo could be raised from the selling of assets estimated at HRK 400 million and not yet shared with HZ Infrastructure and HZ Passengers.
HZ Cargo has three options, according to the Croatian publication: to identify a strategic partner, to reestablish HZ Group by incorporating the three state owned rail companies or to enter bankruptcy.