MCR: Spirited Auction Ends With Coastal Rail Ownership

Incumbent Operator Coastal Rail Wins 61-Round Bidding War Over (G&U Owner) First Colony

19.June, Denver CO — The Mass Coastal Railroad property was acquired by an affiliate of its current operator, following a 61-round bidding war. The gavel was dropped after First Colony Development and Rail Holdings Company declined to counter Coastal Rail LLC’s final $2 million bid. First Colony’s final bid was $1,985,000.

On 17.June, William A. Brandt, Jr., Chapter 11 Trustee, for the San Luis & Rio Grande Railroad, Inc. (a/k/a, Iowa Pacific Holdings) accepted Coastal Rail and First Colony submissions as the only qualified bids ($1,046,309), following his review of several bids submitted by the 2359 hrs MST 16.June (0159 hrs EST 17.June) deadline.

The auction

At 0900 hrs MST 19.June (1100 hrs EST) Trustee Brandt commenced the auction to award the San Luis & Rio Grande Railroad, Inc. 100% LLC membership interest in the Massachusetts Coastal Railroad. The auction was held at the Denver offices of Markus Williams Young & Hunsicker LLC, with the participants appearing via Zoom conference call.

The sixty-first bid ($2 million) was submitted by Coastal Rail and accepted as the Purchase Price. In the absence of a timely response from First Colony, the Trustee selected the final bid by Coastal Rail as the highest and best bid.

Sale to conclude 01.July

At 1232 hrs, the Trustee filed his Report of Auction with the U.S. Bankruptcy Court for the District of Colorado, stating that he will seek the approval of the sale of the 100% membership interests in Mass Coastal to Coastal Rail LLC at the hearing scheduled for 01.July.2020 at 1400 hrs MST (1600 hrs EST).

The Trustee has selected First Colony as the Back-Up Bidder at a Purchase Price of $1,985,000.00. In the event Coastal Rail fails to close in conformity with the Sale Order and the Bidding Procedures, the Trustee will seek at the 01.July sale hearing schedule to approve the sale of the 100% membership interests in Mass Coastal to First Colony {Trustee’s Report of Auction, Case# 19-18905-TBM, 19.June.2020}.

Ca. 2015 map of Mass Coastal Railroad franchise, MCR operates freight, passenger, and excursion services on ~104 miles of Mass DOT-owned rail lines between Framingham, Hyannis, and New Bedford. MCR also conducts major road maintenance and upgrade projects on its lines.