I was being sarcastic. If I recall correctly, the spreadsheet at the start of this thread has their expected starting bids for each item.

Oh ok. I was gonna say I’d hope some of those nice cars would go for more than scrap value!

The last thing the Trustee wants is to get involved in scrapping old RR passenger cars. I'm sure they will gladly sell some of the less desirable cars for $1.00 each than to have to get involved in scrapping them, with all the "hazardous" materials they contain.

Do any of these cars contain asbestos? What hazardous materials do you mean?

"Do any of these cars contain asbestos? What hazardous materials do you mean?"

Well, how does one answer that question to a newcomer? Let's just say they contain a lot of "stuff" that isn't steel and copper, and that makes it where unless scrap prices are quite high, you typically will have to pay a scrapper to cut them up.

For the most part, lead based paint and asbestos either as pipe insulation or possibly as insulation in the walls.

I've been in an RDC with its lead based paint flaking off. Not pleasant stuff. I had completely forgotten about that.

Thanks!

Gents I hate to be the messenger of facts but the facts are that Trustee Connelly cares about one thing ....... get every last dollar he can for the list of "things" he has been hired to liquidate.

Nothing romantic here just cold hard cash and if the highest bidder is a scrapper so be it.

Sad but true. Ross Rowland

I don't see it listed here, but I doubt it was one of the domes valued at $1M. http://railfan.com/wp-content/uploads/2 ... s-copy.pdf

I know from firsthand experience that there are plenty of scrap dealers who have a "don't ask, don't tell" policy and will gladly pay cash and cut passenger cars. One only needs to look at the recent carnage in Logansport, IN, which I suspect involved little or no abatement work. I know of a number of passenger cars that have been scrapped with no remediation done, or at best only minimal work - just enough to have some documentation on file. And scrappers who do follow proper procedures (more or less) are pretty astute at shopping around for the low bid.

Ross is correct, the trustee has been tasked by the Bankruptcy Court to liquidate the assets for the benefit of the creditors. There are probably some situations where storage claims offset the value of the equipment, but in general I doubt there will be many nominal sales.

- Alan Maples

Ross and Alan are very correct - a receiver is there for one basic thing - to raise cash to pay off any debts.

The position is a major one with enormous legal responsibility. Federal regulation is clear, and can be found in 12 CFR § 650.20 - Powers and duties of the receiver.

The two main obligations are found in the regulations and include:

(1) Upon appointment as receiver, the receiver shall take possession of the Corporation in order to wind up the business operations of the Corporation, collect the debts owed to the Corporation, liquidate its property and assets, pay its creditors, and distribute the remaining proceeds to stockholders. The receiver is authorized to exercise all powers necessary to the efficient termination of the Corporation's operation as provided for in this part.

(3) The receiver of the Corporation serves as the trustee of the receivership estate and conducts its operations for the benefit of the creditors and stockholders of the Corporation.

Failure to do so can result in loss of position, any legal authority, and even personal lawsuit for failure to do their job. I've worked with attorneys in handling a receivership and unless something is going to be expensive to get rid of, they want maximum cash for every single asset. If you want something here, make a good offer because to the receiver, historic preservation is probably not high on the list when so much debt is still outstanding.

Bart Jennings

The cars that are getting bid on so far are cars that will be good for revenue use. The full domes and some coaches in good shape. There’s quite a bit of equipment that needs a home.

Yeah I don’t think that car was part of the auction. I never saw a bid go through.

Good observation. These are cars that can make their cost back the fastest, or are needed by those with revenue producing operations. I know of several groups that decided not to buy some equipment because the repair costs were too high and the time involved too long to start operations.

Bart

Bingo. We’ve considered some pieces that have a potential fit to our use and budget. But, the costs to ship by truck or rail plus the costs and time to refurbish are such that there are other quicker, more cost effective options available out there. We’ve only investigated a few these cars though, and something on the list may eventually catch our eye.