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In the The Call (Woonsocket), on 16 Oct 2019 In an article entitled "Commuter rail company files for bankruptcy", RUSS OLIVO of the Woonsocket Call staff wrote: Commuter rail company files for bankruptcyRead more of this story via PressReader's web site
Boston Surface Railroad, which proposes passenger train service in city, says move is re-organization
WOONSOC.ET [sic] Embroiled in a tenancy dispute with the state, the fledgling Boston Surface Railroad Company has voluntarily filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code in the federal District of New Hampshire, where it also maintains an office.
BSRC founder and president Vincent J. Bono said the company’s intention is not to liquidate, however, but to reorganize and remain in business by forcing the state Department of Transportation to honor its lease with the commuter-rail startup, headquartered in One Depot Square. RIDOT is pushing for the eviction of BSRC from the train depot opposite City Hall, contending its tenant is in default of its rent, but the bankruptcy petition, filed Oct. 6, freezes legal action pending in all other jurisdictions.
“Our principal goal of providing efficient, cost-effective commuter rail service between Worcester, MA and Woonsocket and Providence, RI, in 2020 remains our top priority, with e press motor coach service beginning in Spring 2020,” Bono said in a prepared statement. “In order to maintain our timeline, it is critical that the State of Rhode Island continues to honor our e isting 15-year lease at the historic Woonsocket train station.”
Bono added, “We have filed for Chapter 11 reorganization not to alleviate debt, but to ensure the viability of our long-term lease. Woonsocket is a pivotal location for our Worcester-Providence rail service and we hope to move forward as quickly and efficiently as possible.”
Similarly, the lawyer who filed the 41-page bankruptcy petition told The Call Tuesday that all of the creditors many with local ties will be paid, regardless of whether they are secured or unsecured.
The petition lists about $1.86 million in creditor claims, including some $636,300 in the form of secured, bank-issued bonds that were sold to investors in BSRC. The papers list 24 different entities or individuals who invested anywhere from a few thousands dollars to $250,000 in the company. Many
are out-of-towners with unfamiliar names, but a few are local residents, including some who are well-known in business circles.
River Falls Restaurant owner Gary Fernandes, for example, is a secured bondholder in the amount of $15,000. Others include Oscar Hancock of American Beauty Signworks ($20,000); Roland Desjarlais, a principal of Brothers Disposal in Cumberland ($20,000); and Andrew Noyes, president of Rhode Island Dolls, an exotic dancers club at 579 Front St. ($5,000).
In any bankruptcy proceeding, secured creditors are not necessarily guaranteed reimbursement; presumably,
however, they’re first in line to be repaid with the remaining proceeds of a reorganization.
In addition to the secured creditors, the petition lists 26 non-secured creditors, some of whom are also familiar in the local area, including School Committeewoman Rebecca Capwell, a political ally and neighbor of Mayor Lisa Baldelli-Hunt, one of BSRC’s most ardent champions. Capwell is owed $10,000, according to the legal papers.
Another unsecured creditor, in the amount of $65,000, is Kun Realty of Cumberland. That’s roughly the amount of a Superior Court legal judgment entered in Kun’s favor against BSRC, in September, in an unrelated lawsuit alleging the company defaulted on mortgage payments for a parcel on Arnold Street that it had purchased.
The petition also says
BSRC is in possession of about $166,815 in hard assets, including office equipment, vehicles, a train car and less than $2,000 in savings and checking in Bono’s name.
MaineCoonCat wrote: ↑Sat Nov 09, 2019 8:10 pm The Boston Surface Railroad Company announced this week they plan to offer thruway bus service between Woonsocket, Providence and Worcester, Mass., beginning next February. The service will offer commuter-time transportation between the three cities, with seven round trips from Woonsocket and four round trips from Worcester planned daily..
