Flanders and Wallonia are contributing €46 million to rescue struggling rail freight company Lineas, in partnership with KBC and Belfius banks, according to reports from L’Echo and De Tijd on Thursday.
Lineas, a former freight transport subsidiary of SNCB, is not only a major employer with 2,100 employees but also plays a crucial logistical role for Belgium.
The Belgian State owns 45% of Lineas' shares as the company attempts to regain financial stability after a series of deficits. Despite a €60 million bailout in January by the company's two major shareholders, the Federal Participation and Investment Company (SFPIM) and the French investment fund Argos Wityu (55%), the company faces ongoing liquidity issues.
By turning to the regional authorities, the company is implicitly acknowledging that it has not found the private partners it was hoping for. Flanders, through its investment company PMV, is providing a loan of €17.5 million, which could be increased to a maximum of €18 million.
Wallonia is contributing €8 million through Wallonie Entreprendre. Banks KBC and Belfius are putting a total of €20 million on the table, half of which is guaranteed by SFPIM and Argos.
