Romanian state-owned rail freight operator CFR Marfă is entering insolvency proceedings. The company is severely indebted, with its fate being near-certain: liquidation. Insolvency proceedings are likely a way to postpone the inevitable.
The transport ministry approved CFR Marfă’s request for insolvency after it obtained approval from the operator’s shareholders. With the company’s entry into insolvency proceedings, it is leaving a five year-long state of negotiations with its creditors.
Under Romanian law, those negotiations (“Concordat preventiv”) gave CFR Marfă the opportunity to find a way out of its financial problems without entering into official insolvency proceedings. That has evidently been unsuccessful, and…
