With everything else that Brother Jefferies and his staff are dealing with do you really believe they will take the time to tell you anything different than what's on the website because a 'bunch of railfans' want to know (especially if it has the potential to drag them into that terminal morass known as the Bankruptcy Court)?

GME

Looks like the Bankruptcy is going to be dismissed and WRRC is effectively done as a company, with most assets owned by a bank. Of course, no money for Stearns and the botched 14.

What a bunch of crap.

I'm not qualified to understand that 1 page document. Does it say the bankruptcy case of WRRC is dismissed? What does that mean to the various unsecured creditors??

Hopefully Mr. Wilkins will educate us.

Thanks, Ross Rowland

Yes, please can we get a qualified reading by a real lawyer?

I've seen my share of bankruptcy and court paperwork, but I don't quite know what to make of this form. I don't see this saying that the bankruptcy is dismissed. If anything, it looks like WRRC asked for filings by the scrap metal merchant and what seems to be Steamtown to be dismissed/disregarded by the court, and the court agreed with WRRC.

In the end of the day, though, there don't seem to enough assets to cover the lead bank, let alone the other claims IDed on the original filing.

Nick

First of all, there are two actions being talked about on the forum. The civil (bankruptcy) matter appears to be dismissed for the reasons outlined below. The Steamtown coach (criminal) case appears to be ongoing and set for trial this month. The rest of my response is about the civil, bankruptcy case.

I’m not a bankruptcy attorney. My read is that the bank, the secured creditor owns what is left and the company is unable to continue operating or reorganize. My read is also that the unsecured creditors are hosed. The debts aren’t discharged though. It looks like a formal order is forthcoming. Maybe it will have more clarity.

Owners/stockholders are generally not personally liable for the debts of the corporation. Sometimes, you can “pierce the corporate veil” and go after the owners of certain, rare, extraordinary conditions are met. I’ll leave that up to counsel for the unsecured creditors to decide if it’s worth pursuing.

Thank you Mr. Wilkins for that help. I figured early on that the unsecured creditors ( which includes the poor K&T folks ) would get nothing and that is evidently the case.

Sad story but maybe the industry needs to be thankful it dodged what could have been an industry ending tragedy.

Ross Rowland

This cost me a whalloping 60¢ on PACER. The signed order hadn't been posted yet but I would say that Mr. Wilkins has it right. There is nothing left hence nothing more that the Court can do.

FURHER ORDERED that this case is DISMISSED.

Now Hitler has been drug into this? To add insult to injury they misspelled Feurher.

Weak attempt at humor.

Yup, only the Gulf Coast bank will get anything out of this mess, all the others are SOL.

Sad ending but could have been much worse for the industry. We dodged a bullet for sure.

As discussed earlier the creditors will now need to decide if pursuing Rimmasch personally is worth pursuing. I doubt it would be. My life experience in this area is I got 2 court ordered judgements against 2 different individuals and was unable to collect a penny after chasing them both for years.

Remember that great old saying......anytime you have a choice to choose between lucky and smart, take lucky every time.

Ross Rowland

Not necessarily. Listed as a Wasatch debtor is...

"Kinkead & Stilz

Lexington, KY 40507

Professional

$84,777.63"

The attorneys that represented Wasatch in debating the validity of the K&T 14 repairs is getting stiffed for over $84K.

Assuming equal attorney's fees for the locomotive owners, plus expert consultant fees, the judgement, etc., call it an even $1M in cost over 10 years and the locomotive is LESS closer to operating. The locomotive is the real loser.

Extrapolating the equation:

Lucky vs. Smart

LUCK = PREPARATION + OPPORTUNITY

Preparation = Hard work and foresight

Smart wiggles it's way in there somewhere....

With a bit of luck, maybe an opportunity will materialize.