Media Archive

Other B&A lines declare bankruptcy

Article from The Piscataquis Observer, Vol. 164, No. 21, May 22, 2002

BANGOR The rest of the Bangor and Aroostook railroad system filed for bankruptcy protection last week.

The other five lines that make up the Bangor and Aroostook Railroad System include The Candian American Railroad Co., Northern Vermont Railroad Co., voluntarily filed for bankruptcy, an action that could help make the sale of the entire B&A system a stronger possibility.

With debts totalling over $200 million, the B&A system was forced into bankruptcy last year and is in the process of being sold to the highest bidder. Last month Trustee James Howard, a Boston-based attorney, annouced that a purchase and sale agreement was in the works with rail company Rail World, Inc. However, after the agreement is reached, the sale would be opened to other interested buyers to make an offer.

NOTE - This article reflects the views of the author and not necessarily those of the TRC Alliance Team.