MCR: Iowa Pacific Survivor On The Block

Caught in IP Web, Mass Coastal Railroad is Deemed a Disposable Asset in SLGR Bankruptcy. Bids Due 16.June.

20 May, East Wareham MA — A Notice of Sale was posted in several publications, announcing the sale by auction of the Mass Caoastal Railroad, a subsidiary of Cape Rail, which is owned by the San Luis & Rio Grande Railroad, Inc. (“SLRG”), a former Iowa Pacific subsidiary now in U.S. Bankruptcy Court District of Colorado (Case# 19-18905-TBM). The sale of MCR is being managed by the appointed bankruptcy Trustee, William A. Brandt, Jr. of Development Spcialists, Inc. (DSI).

Notice what it says, and doesn’t

The Notice identifies the property for sale as the Massachusetts Coastal Railrod, LLC, characterized as ” a 99-mile short line railroad operating on and near Cape Cod, MA, which currently provides freight rail services primarily for various industrial commodities and the haulage of municipal waste.” No mention is made of MC sister operation, the Cape Cod Central (CCCR), which operates excursion trains along some of the same routes used by MCR, and occasionally utilizes MCR locomotives.

Stalking Horse Bid

“The Stalking Horse Bid is $952,559, which consists of $625,000 of new cash (the “Cash Purchase Price”) plus a relinquishment of any claims held by Mass Coastal to the $327,559 in net cash currently held by the Trustee on Mass Coastal’s behalf as a result of the assignment of the Section 45G Tax Credits.

“The aggregate cash consideration proposed by the first competing Bid must be equal to, or exceed, the sum of the Purchase Price set forth in the Stalking Horse Bid plus a further ten percent (10%) of the Cash Purchase Price” {Notice of Sale by Auction, ANRP, 20.May.2020}