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Rail News: Short Lines & Regionals

New York Regional Rail attracts investor, issues common stock and adds board members

New York Regional Rail Corp. (NYRR) has a new investor. Transit Rail L.L.C. recently agreed to purchase stock in the transportation holding company throughout 2004 and bought the first round of 500 preferred shares for $500,000.

If Transit Rail purchases 2,000 additional shares, the company will acquire voting control of NYRR through Series D stock.

NYRR also recently reached agreements to convert about $730,000 of debt into 7.3 million shares of common stock, completed a private placement of $300,000 to issue 6.8 million shares of common stock and executed an option to purchase the remaining 49 percent of JS Transportation Inc.'s (JST) stock in exchange for 4 million shares of common stock.

"The conversion of debt, infusion of capital and exercise of the JST option will significantly enhance our balance sheet," said NYRR Chairman Gordon Kuhn in a prepared statement

Meanwhile, NYRR elected Don Hutton and Douglas Szalasny to its board. Szalasny has accounting, financial reporting and management experience in construction and other industries; Hutton recently served the state of New York in various positions, including transportation capacities.

NYRR owns and operates New York Cross Harbor Railroad short-haul regional trucking firm JST.

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More News from 2/9/2004