Burkhardt's bid for B&A - Edward A. Burkhardt leads Rail World Inc. consortium to buy Bangor & Aroostook Railroad System - Brief Article

Railway Age, August, 2001

Edward A. Burkhardt, the former president, chairman, and CEO of Wisconsin Central Transportation Corp., may soon be back as a North American railroad operator.

Rail World, Inc., the Chicago-based rail management and investment corporation headed by Burkhardt, is leading a consortium negotiating purchase of the rail properties of the Bangor & Aroostook Railroad System from Iron Road Railways, a Washington, D.C.-based holding company. The 986-mile B&A system includes the Bangor & Aroostook Railroad, the Canadian American Railroad, the Quebec Southern Railroad, the Northern Vermont Railroad, and Logistics Management Systems.

Rail World's partner in the deal is Wheeling Corp., which, among other properties, owns 680-mile regional Wheeling & Lake Erie. Wheeling Corp. Chairman and CEO Larry R. Parsons, W&LE Chief Engineer Joseph J. Gonzales, and Jerry R. Davis, former President of Union Pacific and Southern Pacific, are independent investors.

B&A President and CEO and Iron Road Director Frederic W. Yocum, Jr. says talks with the consortium are aimed at addressing cash flow problems and the heavy debt load that has plagued the B&A in recent years. Burkhardt says the consortium is currently working on a business plan, and will meet with B&A creditors soon "to discuss our thinking and ask for their input." He also says the proposed purchase will be discussed shortly with key shippers and connecting railroads.

Though no firm date has been set for completion of the transaction, Burkhardt indicated it would occur within the next few months. "We have received full cooperation so far from everyone involved," he says. No preliminary purchase price was disclosed.