SNC: Bankruptcy Sale Averted for Now

SNCR MAY AVOID BANKRUPTCY. TWO SUITORS LOOKING AT MULTIPLE USES OF FORMER IOWA PACIFIC ASSET.

SNCR logoThe court-appointed Trustee for the bankrupt Saratoga and North Creek railroad verified that two potential buyers are negotiating to purchase and re-start freight and passenger/tourist service on the line. are underway with who may join forces

William Brandt of Development Specialists, Inc. told the Albany Times Union that he couldn’t yet name the potential buyers, but said, “While these buyers are separately looking at the line, there is also a possibility that they could buy the line jointly, as there appears to be some complementary overlap to what they may want to do with the railroad.”  That overlap may be the use of the line for both freight hauling and tourist operations.

Celebrating its 150th Anniversary in 2021, SNCR’s 98 mile route between Saratoga Springs and the remote Adirondack outpost of Tahawus was last served with a final ore train departure on 23.November.1989 . However, the owner of the Tahawus gravel mine, Mitchell Stone Products, LLC, has indicated interest in reviving rail service to haul his gravel products, which are currently transported by truck.

Earlier in December Brandt indicated that the Surface Transportation Board imposed an abeyance of the bankruptcy proceedings [STB Docket: AB_1261_0] until 30.Apr.2021 April 30, 2021 to provide more time to pursue the potential market sale of the NCR.

In his filing of 14.December.2020, Brandt wrote, “Trustee needs additional time to determine if a sale can occur. The Trustee is in active discussions and negotiations with two potential purchasers of SNCR’s assets who would restart railroad operations.”