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 Post subject: Creditors attempt to force San Luis & Rio Grande bankruptcy
PostPosted: Mon Oct 28, 2019 9:40 am 

Joined: Sat Aug 25, 2007 12:45 am
Posts: 1010
From BusinessDen:
Quote:
Three entities that say they’re owed money by an Alamosa-based railroad currently overseen by a receiver want to force it into bankruptcy.

The San Luis and Rio Grande Railroad, which hauls freight as well as tourists under the name Rio Grande Scenic Railroad, is being targeted by The San Luis Central Railroad, Ralco and the South Middle Creek Road Association. The three entities, which collectively claim to be owed approximately $1.1 million, filed a Chapter 11 involuntary petition against the San Luis and Rio Grande on Oct. 16.

Companies use Chapter 11 bankruptcy protection to reorganize and help keep the business alive, paying creditors over time.

Most bankruptcies are voluntary, and initiated by the individual or business declaring bankruptcy. Creditors, however, can attempt to force a business into bankruptcy through the involuntary petition process.

Link to full article dated October 28,2019: Creditors attempt to force railroad into bankruptcy


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 Post subject: Re: Creditors attempt to force San Luis & Rio Grande bankrup
PostPosted: Mon Oct 28, 2019 11:14 pm 

Joined: Mon Jul 02, 2018 8:04 pm
Posts: 314
Thank you for that article. I rode that train about two weeks ago and talked to the crew about what was going on with the railroad and nobody seemed that concerned about it. They had one freight train leaving Alamosa daily with around 20 cars. They also had a new industry (a sawmill) which is expected to boost rail traffic. Large number of rail cars in storage. Tourist train had a good turnout despite a previous devastating fire that burned up much of the landscape we were traveling through.

This is a interesting case. I know they are the only railroad that services that town and some others along the line. If the judge forces the bankruptcy then assets would be sold off likely leaving several towns with no railroad, along with many lost jobs. While riding the train I saw two previous derailments. One involved about 20 loaded grain cars. Looked like a small wood trestle bridge collapsed. Nearly all the cars had light to moderate damage. A few were still on their sides. Further up the mountain there was several empty aluminium coal cars just outside a tunnel. Some were completely disassembled, others on the side of the right of way, and a few down a steep embankment. Heard the engineer made a brake application going around a sharp curve, throttled up too soon after making the application, and strung the cars off the rails on that sharp curve. Kinda of reminded me of the old Milwaukee Road before they went under.


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