I'm a bit confused on the whole 'after' bankruptcy thing and I'm hoping someone can explain. As I understand it, the NYC and PRR were going broke and decided to merge in 1968 to pool their resources and become the PC. Together, they were still broke and getting broker by the day. So, they decided to diversify into other things than running a rr, but had no idea what they were doing and were mismanaged and cash strapped so the PC finally did go broke and filed bk.
On 4/1/76 CR was formed and took over PC's rr operations...but PC wasn't merged into CR...CR aquired the PC's physical rr assets. The PC was still a corporation that continued to exist on paper and owned all the non-rr assets. Now, here is where I'm confused...
After the bk and on 4/2/76 was the PC just business as usual and simply not in the rr biz anymore? Was the board of directors all the same folks? ...or what I'm thinking is that the common stock was worth next to nothing and that rich guy Carl Linder (sp?) swoooped in, bought a controlling stake since the stock was dirt cheap, and just raided the company for it's assets to make $. And how was it agreed what assets CR got and PC kept? Can anyone explain. Thanks.
On 4/1/76 CR was formed and took over PC's rr operations...but PC wasn't merged into CR...CR aquired the PC's physical rr assets. The PC was still a corporation that continued to exist on paper and owned all the non-rr assets. Now, here is where I'm confused...
After the bk and on 4/2/76 was the PC just business as usual and simply not in the rr biz anymore? Was the board of directors all the same folks? ...or what I'm thinking is that the common stock was worth next to nothing and that rich guy Carl Linder (sp?) swoooped in, bought a controlling stake since the stock was dirt cheap, and just raided the company for it's assets to make $. And how was it agreed what assets CR got and PC kept? Can anyone explain. Thanks.