The International Port of Coos Bay received the needed funding to buy the Coos Bay Rail Line last week, but they need additional time to close the deal. Late Friday afternoon Officials with the Port petitioned the Surface Transportation Board for an extension of the February 18th purchase deadline. Their request noted the tough economic climate in trying to find a replacement loan after the loss of a $12.5 million dollar letter of credit. The filing says the Port has secured enough funds to complete the purchase and will place those funds into an escrow account before the current deadline. Additional time is requested to complete closing documents between both parties in the extensive transaction. Officials with the Port asked the STB to change the closing date to March 31st. Tonight the Port Board of Directors will meet in a special session to finalize the deal. Officials will accept the Oregon Economic and Development Commissions $12.6 million dollar loan package and ratify the approval of the purchase of the 111 mile line.
If they do have the funding, is there really any good reason some sort of extension can't be granted? Boxcab E50
If they have the funding and put it in escrow I see no reason why there should be a problem. A lot of this stuff is just procedural. I wouldn't read too much into it. Thanks for keeping us informed, Burninbob!
That's good news that they got the funding. A shame to see any railroad infrastructure disappear, IMO.
Douglas County Commissioner Susan Morgan in Roseburg, Oregon says RailAmerica will now give the International Port of Coos Bay additional time to complete the purchase of the Coos Bay Rail Line. Morgan says she received notice of the arrangement in an e-mail yesterday morning. The Port, and supporters like Oregon Congressman Peter DeFazio, Senator Ron Wyden of Oregon and The Coos-Siskiyou Shippers Coalition had been appealing the Surface Transportation Board for additional time to complete the purchase. Both parties have now agreed and have jointly notified the STB they will close the $16.6 million dollar deal by March 31st.
