Wednesday, April 18, 2012

IRSI in Receivership

The CBC is reporting that the New Brunswick government is aiming to put Industrial Rail Services Inc. into receivership for failure to pay its loans. IRSI received $22.5 million in loans and guarantees from the province and has fallen behind on payments. Since VIA Rail apparently terminated its LRC refurbishment contract with IRSI on April 11, there is little chance that IRSI will be able to repay those loans.

Since IRSI laid off most of its workers in mid-March, things have gone from bad to worse for IRSI. It appears that the contract they won in the spring of 2009 was too much for them to take on. It is a real shame.

One wonders what the fate of IRSI, and for railfans its fleet of RDCs, will be under a court-appointed receiver will be. I sure hope they can pull out of this.

PS - apparently the Moncton Times and Transcript has an article on this, but since that paper and others have gone to a "paywall" I cannot and will not link to it.

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