Brazilian railroad company Supervia seeks bankruptcy protection
Brazilian railway company Supervia is seeking bankruptcy protection. Before the pandemic, Supervia served nearly 600 000 passengers. Metropolitan railway company Supervia has filed for bankruptcy protection due to a sharp drop in traffic during the Covid-19 pandemic.
The company applied to the Rio de Janeiro court to begin new negotiations with the lenders and the issuing authority, namely the Rio de Janeiro state government. Supervia’s total debt is nearly $ 237.4 million (R $ 1.2 billion), reports Railway Supply magazine citing Supervia.
The company said most of the debt was accumulated during the pandemic when it incurred losses. Supervia handled almost 600 000 passengers a day before the pandemic, but now the daily flow has dropped to 300 000.
Due to this sharp decrease in passenger traffic since March 2020, the company has suffered financial losses of about $ 94.11 million (R $ 474 million).
Supervia said in a statement: “With the worsening pandemic and the economic and social crisis in Rio de Janeiro, full recovery in passenger traffic is expected only by 2023.” The company, like the entire passenger transportation system in Rio de Janeiro, currently has no government subsidies and operates with funds raised from ticket sales.