The Rock, and bankrupts in general.

[Anonymous]

Being Briti***here are a few things about American railroads that i dont understand and one area is a railroad operating in bankruptcy. I dont know why i like the Rock Island because it was liquidated the year i was born but its history as an underdog and a pioneer with its Rockets is appealing. If a railroad is bankrupt it has no money be definition and cannot borrow from a bank. I know in the case of the Rock it got a loan from the Federal government for track rehabiletation and went a vigourous cost cutting drive until it got a possitive cash flow. However, until it got its loan and made those savings, how did it pay its bills. The Rock is the railroad i'd most like to find out about, but i'm intreaged in general as to how the Penn Central, MILW, Eire and NYO&W kept going so long when hey were not making money.[?][%-)]

[nanaimo73]

Those railroads would still be collecting from customers but would not have to pay other railroads per diem or creditors or taxes.