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| Cal-Western Railroad https://www.rypn.org/forums/viewtopic.php?f=1&t=5451 |
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| Author: | Matt Janssen [ Mon Mar 24, 2003 10:22 pm ] |
| Post subject: | Cal-Western Railroad |
From Trains Magazine: Loan may save moribund California Western – for now FORT BRAGG, Calif. – The Fort Bragg City Council has unanimously approved a $125,000 loan to help California Western Railroad keep its operations going until the summer tourist months, when the Skunk Train will resume service. The loan is a public-private partnership between the city and Savings Bank of Mendocino County, which has agreed to match the city’s loan, totaling $250,000. The financially troubled railroad reported that it was filing for Chapter 11 bankruptcy protection in December. At that time it was reported that the railroad only had about $20,000 in available cash and was unable to cover its minimal operating costs, including monthly insurance premiums and staff costs. If the loan can’t be repaid as scheduled, its amount would exceed the value of the collateral, and that CWR may be forced to close anyway. However, despite the risks, council members reportedly agreed that the risk of losing the Skunk Train, which many feel is an anchor to downtown business, as well as a city trademark, is greater than the risks posed by granting a loan to CWR. Trains Magazine matt8443985@yahoo.com |
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