CFR Marfa To Undergo Restructuring, Sell Unprofitable Assets

Romania's state-owned railway fright company CFR Marfa, which has debts of RON1.3 billion, is set to implement a restructuring program to streamline operations and sell unproductive assets under the supervision of insolvency practitioners CITR.

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The restructuring plan submitted by CITR to the Bucharest Court entails increasing freight volumes throughout 2020, purposing rolling stock according to customer needs, reducing operational expenses, reducing costs of renting railways cars by investing in the company's own and the reorganization of the company's regional departments and central structure.

The company has assets of RON5.1 billion, of which immovable assets reach RON4.7 billion. It also has debts amounting to RON1.3 billion.

CFR Marfa and CITR are set to identify unproductive company assets in view of sale or potential lease, to unburden the company from additional costs (security services, maintenance, repairs, local taxes).

CFR Marfa's 2020 budget sees revenues at over RON1 billion and seeks to break even by limiting its expenses to the same amount. The company has approximately 5,500 employees and spends RON357.2 million on salaries alone.

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