Gilbert B Norman wrote:Mr. B and A, I'm not a lawyer nor do I play one on TV - and they don't have too many TV series about my profession - CPA.
However, I would think that the 'corporate shield' in place only to conform with a bilateral treaty between the US and Canada, between MM&A and MM&A Canada, will be easy to pierce; same with any domestic properties of Rail World (San Luis Central?).
I think RW's overseas properties are safe.
Just an observer 'doin' the talkin'
The (what you rightly note as excellent)
Portland Press-Herald article linked to above identifies Rail World as one of 20 anonymous shareholders in the MM&A. This leads me to believe that, in fact, the rest of Rail World's properties, both US and elsewhere, are going to be remote from any bankruptcy, or any legal liability stemming from the wreck. The idea that creditors can't go after the assets of individual shareholders of a company is a fundamental principal of the limited liability corporation, after all.
I think the bigger danger to Rail World is reputational risk. Burkhardt's been a skilled direct investor in the rail industry for 30+ years: but after this, who is going to want to risk a PR nightmare by selling him a line? I see this as a real problem, particularly when you're talking about privatized state rail systems overseas, where he is already coming in at a disadvantage as a foreign interloper.