GERMAN rail freight operator Helrom has initiated the process to identify a new owner that will enable the company to continue operating while offering the business long-term stability.
Helrom applied for preliminary insolvency at Frankfurt’s local court last month. Attorney Thomas Rittmeister was subsequently appointed as preliminary insolvency administrator, with PwC conducting the investor process as mandated by the creditors’ committee. This is expected to be completed in October. As part of a merger and acquisitions process, PwC will conduct targeted discussions with potential investors, including those active in the international market, in the coming weeks.
Helrom says the background to the insolvency proceedings is a “short-term financing gap that could not be closed in time.” It adds that day-to-day operations have been largely unaffected since it filed for insolvency, with its Düsseldorf - Verona route the only one of its five routes that has been suspended. “All established routes continue to operate without interruption,” the company says.
“Helrom has a solid operational foundation and a forward-looking business model,” Rittmeister says. “The investor process is intended to ensure the continuation of operations and the development of a viable solution for the company’s future.”
Helrom employs around 250 people and operates five rail freight services across four corridors. IRJ recently visited Helrom’s terminal in Lébény, Hungary, and was able to see first-hand its innovative swing-tray wagon technology that allows semi-trailers to be loaded and unloaded on hard standing without requiring any dedicated terminal infrastructure.
Helrom first began operating services in 2021 and was preparing to launch a new service from Düsseldorf to Katowice, in addition to existing services from Düsseldorf to Vienna, Budapest, Verona and Trento, as well as Regensburg - Verona.
Swiss Life Asset Management completed the acquisition of a “significant stake” in Helrom to become anchor investor in April 2022 and as recently as May this year Helrom successfully completed a €32.9m green loan deal with Société Générale and DAL Deutsche Anlagen-Leasing, to purchase 120 new wagons.
“We are at the beginning of a restructuring phase - not at the end of our journey,” says Helrom CEO, Roman Noack. “Our goal is clear: we are focusing on our strengths, safeguarding service for our customers, and making our business model fit for the future. This phase requires tough decisions, but also clear direction - and that is exactly what we are providing now.”
