Optimize value of rail assets for bankruptcy trustee
The bankruptcy trustee of this 850-mile U.S. and Canadian operation requested assistance to sell off right-of-way and property leases to generate short-term cash.
In 2001, after decades of managing a diverse and wide-ranging set of property and crossing agreements, Bangor & Aroostock’s real estate agreements had grown beyond the company’s ability to update and manage their accuracy. The true value of these assets was unknown to the company itself; Bangor & Aroostock was therefore not able to make a clear presentation. These assets were subsequently “off the table” in negotiations to sell the railroad.
Strategic Rail Finance evaluated every agreement in the railroad’s portfolio and reduced an outdated list of 3,000 line-items to an accurate count of 1,104. SRF updated the lease rates on all remaining agreements.