CN subsidiary Bessemer and Lake Erie Railroad Company (B&LE) and CSX Transportation, Inc. (CSXT) had originally held a drop dead date of 30 November 2020, for the closing of a deal on the Massena Line acquisition by CN from CSXT.
The deal had been held in limbo by CN roughly since 5 June 2020, when CN had begun pursuit of acquiring the Pan Am Railways.
As of 30 November, a letter authored for the B&LE to the STB advised that both B&LE and CSXT have pending petitions for reconsideration in the matter filed on 5 June 2020, requesting removal of Ordering Paragraph No. 3 of the Board’s decision of 6 April 2020. The parties’ executed Purchase and Sale Agreement (PSA) included a Drop Dead Date of 30 November 2020 whereby either railroad could terminate the line sale agreement at any point after that date unless closing had occurred.
The parties hereby notify the Board that pursuant to a written amendment to the PSA, they have extended the Drop Dead Date to February 28, 2021. However, the parties note that integration planning, including CSXT’s negotiation of pre-consummation labor implementing agreements, will take some time after a Board decision before Closing could occur.
Under the circumstances, the parties respectfully request the Board issue its decision on the pending petitions for reconsideration of Ordering Paragraph No. 3 as soon as possible. B&LE and CSXT remain firmly committed to completion of the Transaction and to the realization of the significant public interest benefits that the Board recognized in its Approval Decision.