TAHAWAUS, N.Y. — The bankruptcy sale of a portion of the former Saratoga & North Creek Railroad is jeopardy after the buyers failed to submit a deposit in timely fashion, according to the bankruptcy trustee.
The Adirondack Explorer news site reports buyers Carol McLean-Wright and John Wright, operating as Doc N Duchess Railway, did not meet the deposit requirement. The Wrights bid $3.33 million for the 30-mile segment of the line to Tahawaus, planning to use it to ship titanium from a former mine site [see “Former Saratoga & North Creek trackage sells …,” Trains News Wire, March 4, 2022].
Bankruptcy trustee William Brandt Jr. told the Explorer in an email that he has begun negotiating with the second-highest bidder — Revolution Rail, which operates a rail-biking operation on a portion of the line — although there was a slight chance the original sale could be salvaged — “but only if they have real financing lined up.”
McLean-Wright told the news site that the company put up $35,000 to participate in the auction but was only told later that additional deposits of $250,000, and later $500,000, would be required. She said the company has European investors and that financial transfers are being delayed because of scrutiny of asset movements as a result of the war in Ukraine, and therefore sought a closing date near the end of the 90-day period to pay the full amount.
Actually since Russia was a major source of Titanium there should be greater demand for a US-based source of the metal.
But, how much Titanium is there in the once and future mines there?
A lot, plus Rare Earth minerals.
*All* large dollar movements out of Europe are under scrutiny due to oligarchs using their less public LLC’s to launder their assets into US or foreign entities. The Wall Street Journal, NY Times and WaPo have been reporting on this since the US put crimps on the SWIFT system.
Lining up additional funds delayed because of Ukraine? Entirely believable. Just another unintended consequence of necessary actions.