A2A can sell assets to pay off debts of a company under Canadian investigation
The company that proposed to build a rail line connecting Alaska to the rest of the North American rail network has filed for bankruptcy and could be sold to pay off debts. Bloomberg reports that Alaska-Alberta Railway Development Corp. – which rose to prominence under the A2A label – received protection from a Canadian court after a loan company receiver called a $ 149 million loan.
A2A is Bridging Finance Inc.’s largest debtor, which has been placed in receivership by Canadian regulators while Bridging is investigated for suspected irregularities. [see “Digest: Texas Central signs $1.6 billion contract …,” Trains News Wire, May 4, 2021]. Pricewaterhouse Coopers, who now oversees Bridging, called the A2A loan earlier this month, leading to bankruptcy.
In a statement posted on its website, A2A said it would conduct a sale and investment process to continue refinancing the loan. The sale could include assets including engineering works, permits and agreements that are part of the project. “The company will maintain a core team during this process in Canada and the United States,” the release said, “and will maintain links with its large engineering, licensing, marketing and stakeholder outreach teams. “.
A2A sought to build a $ 22 billion, 1,600 mile line between the oil sands areas of Alberta – where it would have been connected to existing rail lines – to ports in Alaska, in part because that she believed the opposition would prevent a pipeline project using these oils. from sand fields to Canadian ports [see “Canadian development company renews push for rail line …,” News Wire, April 9, 2019]. President Donald Trump issued a permit for the project in September [see “Digest: Trump indicates approval coming for proposed Alaska rai link,” News Wire, Sept. 28, 2020].
A2A said in its statement that it still believes the concept is sound and has made significant progress towards full funding. He also indicated that the project would continue without founder Sean McCoshen, who is linked to some of the alleged irregularities involving Bridging Finance.