Alamosa, CO, June 14, 2022 (GLOBE NEWSWIRE) — William A. Brandt Jr., the Chapter 11 administrator of the currently operating San Luis & Rio Grande Railroad Inc., has announced plans, subject to the approval from the US Bankruptcy Court, to sell substantially all of the railroad’s assets through an auction process. Interested parties must submit an offer by July 10, 2022 at 4:00 p.m. MT. The proposed auction will be in accordance with the terms and bidding procedures described in the motion approval bidding proceedings recently filed by the Chapter 11 trustee, which is currently pending in US court. of the District of Colorado Bankruptcies, Case No. 19-18905-TBM. .
The San Luis & Rio Grande Railroad (“SLRG”) is a “common carrier” operating under the jurisdiction of the Federal Surface Transportation Board. SLRG owns and operates a 155-mile shortline railroad serving the San Luis Valley in southern Colorado. Originally built in 1878, the railroad crosses the geographically strategic La Veta Pass above the Sangre de Cristo mountain range and connects the eastern plains of Colorado to the San Luis Valley.
With an interchange connection to the Union Pacific mainline in Walsenburg, Colorado, SLRG currently provides freight rail service for a variety of industrial, mineral and agricultural commodities in the San Luis Valley, as well as extensive railcar storage facilities along along its grip. with a storage capacity of more than 3,100 cars. Prior to the bankruptcy filing, the SLRG also operated a variety of passenger excursion trains over the scenic La Veta Pass at an elevation of 9,400 feet.
The assets for sale consist primarily of various real estate and personal property used in the conduct and maintenance of freight railway operations. These include track, subgrade, sleepers, other track materials, inventory, track maintenance equipment, vehicles, bridges, culverts, signals, stations, depots, yards, storage facilities, buildings, workshops, garage structures and various other agreements. or licenses relating to real property located on, alongside, above and under SLRG railway lines.
The sale of SLRG’s assets is subject to the explicit approval and authorization of the bankruptcy court. The assets for sale will be transferred on an “as is, where is” basis and will exclude cash and equity interests that SLRG holds in subsidiary railways. All right, title and interest of the Railway in the assets of SLRG shall be sold free and clear of all interests, liens, claims and encumbrances, with all liens, claims and encumbrances to be attached to the proceeds of sale.
The Chapter 11 Trustee, together with its court-appointed financial advisors at Development Specialists, Inc. (“DSI”), has set a minimum offer of $5,750,000.00, plus assumption of all debt relating to the assets purchased after the sale. closing, as the required price for these assets. The submitted purchase price must be equal to or greater than this reserve price of $5,750,000.00 to be considered a qualified offer.
If the Trustee receives multiple qualified bids, an auction will be held on July 14, 2022 at the offices of Markus Williams Young & Hunsicker, LLC in Denver. This auction may be convened remotely, by videoconference, if deemed appropriate by the trustee or rescheduled if necessary with notice to all qualified bidders.
Copies of the Tender Proceedings Approval Motion and all other related exhibits are available upon request by contacting Trustee Counsel, or for a fee through PACER by visiting http://www.cob.uscourts.gov.
For more information, please contact DSI’s financial advisors who are handling the organization of this sales effort for the trustee. Either William G. Brandt at 312-263-4141 or [email protected]or Patrick J. O’Malley at 312-263-4141 or [email protected]should be the point of contact for further questions.
Link to the San Luis & Rio Grande Railroad line map: https://www.dropbox.com/s/5arp601fkmavp34/SLRG%20Line%20Map%20V2.bmp?dl=0
Development Specialists, Inc. (DSI) is a leading provider of management consulting and financial advisory services, including turnaround advice, financial restructuring, litigation support, fiduciary services and forensic accounting. Our clients include business owners, private equity investors, boards of directors, financial institutions, secured lenders, bondholders and unsecured creditors. For nearly 48 years, DSI has been guided by one goal: to maximize value for all stakeholders. With our team of highly skilled and diverse professionals, our offices in the United States and our international subsidiaries, and an unparalleled range of experience, DSI has built a solid reputation as an industry leader.
About San Luis & Rio Grande Railroad:
The San Luis & Rio Grande Railroad is an established “common carrier” railroad line operating under the jurisdiction of the Federal Surface Transportation Board whose assets consist primarily of real estate, related operational equipment, transport infrastructure, standard gauge railway tracks spanning approximately 155 miles. The SLRG east-west line runs from South Fork, CO east through the San Luis Valley and over La Veta Pass to Walsenburg, CO. While the north-south spur of the railroad runs approximately 20 miles between downtown Alamosa, CO and Antonito, CO, ending a few miles north of the New Mexico border.
Todd Templin, BoardroomRP