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 Post subject: Re: News Wire: Polar Express license holder sues Iowa Pacifi
PostPosted: Thu Mar 09, 2017 2:40 pm 

Joined: Sun Aug 22, 2004 8:28 am
Posts: 2392
Location: Salt Lake City, Utah
Trainlawyer wrote:

The Iowa Pacific situation is fairly complex with a number of moving parts. It is the type of thing which is a bankruptcy attorney's dream ($$$) and a creditor's nightmare ($$$). That makes it fairly easy to draw a reasonable, logical inference and get it wrong.


My best guess is that this is where we may eventually be headed, with IPH. Given the fact that there are potential claims from secured creditors, unsecured creditors, taxing authorities, litigation creditors, it is kind of a mess and difficult to keep all of the names and players straight.

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 Post subject: Re: News Wire: Polar Express license holder sues Iowa Pacifi
PostPosted: Thu Mar 09, 2017 3:32 pm 

Joined: Mon May 24, 2010 10:22 am
Posts: 409
Just a thought, with the Iowa Pacific situation, If I was a IP employee, or ex-IP employee, I would be checking that my FICA withholding has been paid to the government.

I know someone who was a "rat that went down with the ship", and not only did he not get his last couple of checks, several checks worth of withholding were not paid to the government, and the employee is liable for that money. He had a bit of a scramble to cover his obligations.

-Hudson


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 Post subject: Re: News Wire: Polar Express license holder sues Iowa Pacifi
PostPosted: Thu Mar 09, 2017 3:41 pm 

Joined: Sun Aug 22, 2004 5:19 pm
Posts: 1533
Location: Pottstown,Pa.
What I've been wondering is with the endless bad press for the last 2/3 months how is it that IPH hasn't filed for bankruptcy with all those wolves not only at the door but evidently running loose throughout the house???

I guess it's possible that they're waiting for the requisite number of creditors to band together to force them into bankruptcy??

Time will tell. RIP, Ross Rowland


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 Post subject: Re: News Wire: Polar Express license holder sues Iowa Pacifi
PostPosted: Sun Mar 19, 2017 4:13 pm 

Joined: Sun Aug 22, 2004 11:12 am
Posts: 457
Location: Somewhere off the coast of New England
elueck wrote:
A report in the Palestine, TX newspaper states that the Texas State Railroad Authority has given Iowa Pacific until March 31 to come up with the $1.9 million that IPH owes in loans and non payment of rentals or be evicted from the property due to breach of contract. Should IPH not pay, they will have until May 15 to remove their equipment from the property. The report further states that the authority is entertaining proposals from at least 6 other entities wishing to operate the railroad.

It looks like this may be the last dance.
http://www.palestineherald.com/news/rai%20...%2022045.html
To use a politically incorrect expression from my boyhood - The fat lady ain't sung yet.

People who survive in this industry tend to very resilient and that includes Ed Ellis.

He has, according to the article, until the end of the month before they can initiate any action to remove him. I will be very pleasantly surprised if, at the close of business on March 31, or as soon as practicable thereafter, the Rusk, Palestine, & Pacific places all of the outbound cars and it's own equipment at Palestine for the UP to pick up and fades off into the night. A far more likely scenario is that on April 1 the town will begin a series of legal proceedings to remove Iowa Pacific Holdings as the operator and IPH will take every opportunity afforded by the system to delay the proceeding until as favorable a settlement as they can get is reached.

There is also the issue of a new operator being ready to go on April 1. First a new operator must be selected by the Texas State Railroad Authority Board and make the necessary arrangements to begin operations. I doubt that that can happen in less than two weeks. While the tourist passenger service could be theoretically be transitioned rapidly once the operator is selected the freight operation will take a bit more time due to the regulatory issues involved and the need to deal with the existing storage contracts. Competent counsel can make this drag on for a year or more at less cost than curing the default.

As of Saturday morning there had been no new filings of any kind in the Federal Courts or at the Surface Transportation Board.

GME

Note: There is a similar situation discussed here at length which has been going on for almost two years where a tenant common carrier whose lease expired and was not renewed received notice to quit and has refused to vacate. While there is an agreement in principle with a new operator they are unable to consummate said agreement due to the continued presence of the prior operator.


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 Post subject: Re: News Wire: Polar Express license holder sues Iowa Pacifi
PostPosted: Sun Mar 19, 2017 9:43 pm 

Joined: Wed Feb 16, 2005 11:17 pm
Posts: 209
Location: Houston, TX
A very plausible scenario. TSRR facebook page reports that the dogwood train running on April 2 is sold out so it does not look as if IPH intends to fade away into the night, should they not come up with the money. There is also another possibility, in that IPH could make a partial payment and attempt to work out a payment schedule for the remainder. At this point there are a multitude of possibilities.

I am sure of only one thing. What ever happens between now and March 31, or even after, the Palestine paper does appear to be on top of the situation, as they should be. This is terribly important to the Cities of Palestine and Rusk.


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