ABC-NACO set to sell majority of operating assets (12/10/2001)


On Dec. 7, ABC-NACO Inc. agreed to sell most of its operating assets to TCF Railco Acquisition Corp. (TCF) for $75 million.

The transaction — subject to a Dec. 11 Illinois bankruptcy court hearing and Hart-Scott-Rodino Antitrust Improvements Act review — would include all operating assets of ABC-NACO's U.S. rail and track products, and rail services units (excluding Canadian and Mexican rail-product subsidiaries), plus the company's stock in European subsidiaries and Chinese joint ventures.

ABC-NACO hopes to close the transaction quickly to ensure a smooth ownership transition and help stabilize the company's finances, said President and Chief Executive Officer Vaughn Makary in a prepared statement.

TCF is owned by Three Cities Funds III L.P. and affiliates, which specialize in making controlled investments in medium-sized companies.

Lombard. Ill.-based ABC-NACO in October filed to reorganize under Chapter 11 in U.S. Bankruptcy Court for the Northern District of Illinois.

Source: Progressive Railroading Daily News