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<QUOTE>" If this all goes through, and sometime down the road, DM&E goes under, or at least defaults on the loans, what happens? Does Uncle Sam make sure the $2.5B party gets paid back? Is the $2.5B party, or the $4B party the junior lien holder. If the whole thing goes bust, who is stuck? This whole scenario has not been made clear in anything I've ever read about the DM&E loan/expansion." Excellent question Murph,I hope someone qualified puts in an answer. It seems like I recall reading here a while back that when railroads go bust, reorganization is the norm as opposed to liquidation. Can't build too many office buildings on tracts of land 60' wide x 150 miles long, so the bulk of the asset is not fit for very much else. So the creditors get the assets, the stockholders of record get a good reaming, they change the name from "railroad" to "railway" (or vice versa) and try again, this time with lower economic ambitions, and a new operator. At least that's the way I think it works.
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