Retrack Slovakia and Retrack Czech have filed for insolvency proceedings.
What happened
In the second half of 2024, Retrack Slovakia faced a decline in revenue and profitability. On January 14, 2025, Rail Services Slovakia (RSS) informed VTG of its intention to divest its 40% stake in Retrack Slovakia. As a result, VTG engaged in discussions with the management of Retrack Slovakia to explore restructuring options.
During this period, VTG provided financial support to maintain the company’s operations. The objective was to stabilize the business while exploring possible future solutions.
Deterioration of market conditions
Throughout the initial months of 2025, the situation for Retrack Slovakia further deteriorated. The economic environment in the Eastern European traction market remained difficult. VTG’s evaluations led to the conclusion that continued restructuring would not be financially sustainable under the current circumstances.
The financial position of Retrack Slovakia worsened, and liquidity challenges ultimately led to the decision to file for insolvency. Retrack Czech, financially connected to the Slovakian operation, was affected in the same process.
Stake impact
The insolvency proceedings impact both Retrack Slovakia and Retrack Czech. The declared intention is to pursue the next steps within the framework of legally compliant and financially responsible processes.
VTG provided considerable financial assistance over the past months. The ownership transfer of the RSS stake to VTG was part of the preparatory steps to stabilize the company, but the sustained market challenges outweighed the recovery attempts.
