Bangor & Aroostook Still Looking for Buyer or Partner

BANGOR, Maine - The fate of Iron Road Railways' Bangor & Aroostook System is no clearer now that the Maine-based railroad has a new president at the helm.

In an effort to attract potential buyers, the B&A is cutting costs and restructuring, The Boston Globe reported. B&A President Fred Yocum told the newspaper that 14 employees took the railroad up on early retirement packages.

Yocum said Iron Road put him in charge of the railroad after the previous president failed to secure a purchase of the rail line. "I'm here," he said, "largely because we haven't had a successful transaction at this point."

In early February, railroad anticipated it would have a new owner or investor within a week. Such deals never materialized, but Yocum says the company is working with potential suitors.

The 858-mile Bangor & Aroostook system includes the Bangor & Aroostook, Canadian American, Northern Vermont, and Quebec Southern.

The lines' cash flow problems are traced to a refinancing more than 18 months ago.