Amtrak Saved from Bankruptcy Marpasks for GAO Trains Regain a Future in an 11Th-Hour Move, the U.S
' ~§§§(fO~§[fil [Fd§~~ [M]§OD1J8 ·'(l\11ehig~n Ohio • Indiana Issue 128 November 1997 Amtrak saved from bankruptcy MARPasks for GAO Trains regain a future In an 11th-hour move, the U.S. Congress has saved Am investigation trak from an almost -certain bankruptcy by passing the Am trak reform and reauthorization bill. The measure passed In a letter to U.S. Senator Spen both the Senate and House of Representatives without any cer Abraham (R-Michigan), objection. With the clock ticking down to a holiday re MARP has asked for a General Ac cess, Republicans and Democrats negotiated an agreement counting Office (GAO) investiga that drew support from interest groups that were at odds tion and assessment of the effec only days earlier. tiveness ofAmtrak's management. Amtrak's access to $2.3 billion in capital investment The request was prompted by the funds, included in the Taxpayer Relief Act of 1997, was fall schedules for the Chicago-De tied to passage of the reform bill. The capital funds are troit corridor, which went into ef needed to retire old debt and to upgrade aging facilities fect Oct. 26. and rolling stock. Without these, Amtrak was facing the The new schedules are the long prospect having to go back to unsympathetic creditors in est in Amtrak's history, and, at six December, which probably would have forced Amtrak to hours (Chicago-Detroit), are even file for bankruptcy. longer than they were in the days of Penn Central. After over $100 mil It is quite likely that, if Amtrak had filed for bankruptcy, ., a large portion of the national system would have been lion of track and signal work by the -' linnirl<=>tf>rl to n<=>v off rrPrlitor<:: Tn<:tP<=>rl A rntr<=>k h!'l<:: <::nrl- State of Michigan and Amtrak over - x-~-~..,...----~~~I~-.:t D.l.-.;;;; ~I~ ~··e- prospect having to go_back to unsympathetic creditors in est in Amtrak's history, and, at six December, which probably would have forced Amtrak to hours (Chicago-Detroit), are even file for bankruptcy.
[Show full text]