Slovakia and Czech Republic Initiate Insolvency Proceedings for Retrack

As reported by VTG, both Retrack Slovakia and Retrack Czech have entered insolvency proceedings. The parent company cited ongoing difficulties in the Eastern European traction market as a key factor that hindered any chance of a sustainable recovery, despite their attempts at restructuring and providing financial backing.

Retrack Slovakia originated in 2016 when Carbo Rail was formed through the merger of Carbosped and Rail Sped.In 2020, VTG Rail Logistics took control by acquiring a majority share, rebranding it as part of its Retrack freight operations.

the situation worsened after revenues dropped significantly in the latter half of 2024. Consequently, minority stakeholder Rail Services Slovakia opted to divest its 40% interest to VTG earlier this year.

On June 30, VTG announced that they were engaged in serious talks with management at Retrack Slovakia about possible restructuring efforts while also providing considerable financial assistance to help stabilize operations. Sadly, due to the ongoing tough conditions within the Eastern European traction market, it became evident that a long-term turnaround for Retrack Slovakia was not feasible.

The company explored all potential solutions; however, liquidity issues escalated rapidly for Retrack Slovakia until insolvency became certain. This financial strain has also impacted Retrack Czech due to their interconnectedness.

“We are truly saddened by this turn of events,” stated VTG representatives. “Our hope is for a positive resolution for all employees and stakeholders involved during thes insolvency proceedings.”