Canadian Railroads > Who had August 7 in the Day MMA files bankruptcy pool?

http://www.bloomberg.com/news/2013-08-07/montreal-maine-railway-files-for-bankruptcy-after-crash.html

BobE,

I didn't know that we had a pool, but I would have guessed sooner than later. How accurate was your crystal ball?

I posted this on the 6th.. on the next tread.

If your insurance level does not cover your liabilities ( and these are just starting for the MM&A) you "are" bankrupt, hauling oil is not a factor anymore.
read between the line, the only option that is truly discuss is how and when to declare it as to make the best for the shareholder. My two cents in the future, they will declare it, G&W who already owns the line on the north shore and the St-Lawrence and Atlantic on the south will make a bid for it ( to joint their line in Mtl and have more flexibility in their traffic) , the offer against the infrastructure only ( which do not take them into the class action issue)will be for far less than the liabilities to the Quebec Govt and the town of Lac Megantic who will have no choice but accept a dime on the dollar and move on or spend more $ in years of litigation for the same end results when their cost are in.

Sad, but most likely.

PanAm Railways, which connects with MMA at Northern Maine Jct, will probably make a bid for the line, too.

The state of Maine, which invested a bundle in the MM&A a few years ago, probably will have a say in the hearings and directed service ruling(s)

Lackawanna484 Wrote:
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> PanAm Railways, which connects with MMA at
> Northern Maine Jct, will probably make a bid for
> the line, too.
>
> The state of Maine, which invested a bundle in the
> MM&A a few years ago, probably will have a say in
> the hearings and directed service ruling(s)
Don't forget J.D. Irving, they already operate the old MM&A lines abandoned in 2011 in Maine, as well as the eastern part of the old CP line. They also have deeper pockets than Pan Am. G&W might be interested in the property, but I know Irving is, and Irving would have more use for it.

Watch for CP to step in and buy it for pennies to save their refinery link.

Posted from Android

Um...there is the small matter of the $27 million RRIF loan, against which all of the US assets of MM&A are already pledged as collateral.

The State of Maine actually bought about 300 miles of former BAR trackage in Maine. That deal was complicated by the RRIF loan. FRA's interest had to be protected.

MM&A has no unencumbered US assets. I'm not sure what happens next.

If CP bought it, would they be tantamount to their admitting they made a mistake by selling it almost 20 years in the first place ?
Is EHH going to buy a run down railroad that requires money to be spent ? He wants a quick financial killing, cut, and run , not long term investment. Warren Buffet he is not.

http://mobile.bloomberg.com/news/2013-05-22/canadian-pacific-seeks-to-buy-short-lines-as-it-skips-big-deals.html



joemvcnj Wrote:
-------------------------------------------------------
> If CP bought it, would they be tantamount to their
> admitting they made a mistake by selling it almost
> 20 years in the first place ?
> Is EHH going to buy a run down railroad that
> requires money to be spent ? He wants a quick
> financial killing, cut, and run , not long term
> investment. Warren Buffet he is not.

Posted from Android

The article merely says "will consider buying regional railroads to improve efficiency "
Not a word about MM&A specifically.

joemvcnj Wrote:
-------------------------------------------------------
> If CP bought it, would they be tantamount to their
> admitting they made a mistake by selling it almost
> 20 years in the first place ?
> Is EHH going to buy a run down railroad that
> requires money to be spent ? He wants a quick
> financial killing, cut, and run , not long term
> investment. Warren Buffet he is not.

Rumour has it that EHH is buying back all the shortlines.

Dean Purcell
Bracebridge, ON

What a crock of BS! I still think they should
hang Mr. Ed! cf7

shoretower Wrote:
-------------------------------------------------------
> Um...there is the small matter of the $27 million
> RRIF loan, against which all of the US assets of
> MM&A are already pledged as collateral.
>
> The State of Maine actually bought about 300 miles
> of former BAR trackage in Maine. That deal was
> complicated by the RRIF loan. FRA's interest had
> to be protected.
>
> MM&A has no unencumbered US assets. I'm not sure
> what happens next.

Yes, that's why I mentioned that the state of Maine would have a major voice in the disposition of MM&A's assets.

It will be interesting to see how the various agencies (FRA, the state, Quebec, etc) interact with the US bankruptcy court, Quebec civil court and criminal court, and with the economic interests of a severely depressed area of two countries.

I still think there will be an offer from CP / NS / PAR /NB etc to operate an alternate route to Irving.