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Arizona freight railway spared scrap heap in last-minute sale
BANKRUPT Apache Railway in the rural Arizona town of Snowflake has been sold in a last-minute deal that is expected to keep the 55-mile railroad up and running, and not have its tracks sold as scrap.
Judge Madeleine Wanslee of the US Bankruptcy Court in Phoenix cleared a group of investors and a local landowner to purchase the railway for US$7 million. The sale proceeds will pay off a lender group led by California-based Hackman Capital Partners, an industrial real-estate investor, reports the Wall Street Journal.
The Apache Railway's owner Rob Charles had filed for bankruptcy protection in May after Hackman officials, owed $7.2 million, maneuvered to take over its operations.
Leaders in Snowflake were worried Hackman would pull the railroad's steel tracks out of the ground to sell for scrap. Mr Charles estimated that with several locomotives and a track made of heavy tensile steel, Apache's assets are worth $11 million.
Hackman obtained the railway in a deal to buy an empty paper mill near the town from Canada's Catalyst Paper Corp for $13.5 million in 2012.
"The Apache Railway has used up another one of its nine lives, and we are glad it is still serving the economic development of our community andNavajoCounty," said Mayor Tom Poscharsky of Snowflake, a town of 5,590.
Judge Madeleine Wanslee of the US Bankruptcy Court in Phoenix cleared a group of investors and a local landowner to purchase the railway for US$7 million. The sale proceeds will pay off a lender group led by California-based Hackman Capital Partners, an industrial real-estate investor, reports the Wall Street Journal.
The Apache Railway's owner Rob Charles had filed for bankruptcy protection in May after Hackman officials, owed $7.2 million, maneuvered to take over its operations.
Leaders in Snowflake were worried Hackman would pull the railroad's steel tracks out of the ground to sell for scrap. Mr Charles estimated that with several locomotives and a track made of heavy tensile steel, Apache's assets are worth $11 million.
Hackman obtained the railway in a deal to buy an empty paper mill near the town from Canada's Catalyst Paper Corp for $13.5 million in 2012.
"The Apache Railway has used up another one of its nine lives, and we are glad it is still serving the economic development of our community andNavajoCounty," said Mayor Tom Poscharsky of Snowflake, a town of 5,590.
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