The Railway Authority in the Czech Republic has revoked the license of Jindřichův Hradec local railways (JHMD) to operate rail transport due to its financial unfitness. JHMD filed for insolvency in September 2022 and has been unable to prove its financial stability, leading to the revocation of its authorization to operate. JHMD owes around CZK 300 million and does not have the necessary permits to operate. The company has also been loss-making for a long time and has 140 creditors, who are owed CZK 160.7 million. Raiffeisenbank and the State Fund for Transport Infrastructure have filed lawsuits against JHMD for over CZK 178 million.

The South Bohemian Region and the Vysočina Region have arranged for replacement bus transport and plan to form a registered association to restore the operation of the Jindřichův Hradec narrow gauge railway, which would cost approximately CZK 20 million. The railway has been in operation since 1897 and has carried approximately 400,000 passengers annually in recent years.

Article by Prague Forum