WALLED LAKE, Mich. — Railmark Holdings announced that it sold its Michigan Air-Line Railway Co. to Nebraska-based Browner Turnout Co.
The Oakland County Michigan railroad serves the communities of West Bloomfield, Commerce Township, Walled Lake and Wixom and is the home of the iconic Star Clipper Dinner Train, the first dinner train in North America, now in its 25th season. Browner Turnout Co. becomes the fifth owner of the rail line in 123 years.
The price and terms of the sale are not being disclosed by the Company, however, Railmark is using the transaction to eliminate its long-term debt, redeem a majority of its Preferred Stock, and provide working capital for upcoming acquisitions. Railmark will be relocating its corporate headquarters sometime in 1st quarter 2010.
The Company’s Rail Entertainment USA Inc., Railmark Track Works Inc. and Rail Freight Solutions Inc. subsidiaries will retain active operating locations and employees in Michigan. Railmark will be providing certain transitional services to the railroad’s new owner after the sale. This transaction does not affect the Star Clipper Dinner Train’s remaining 2009 schedule.
The transaction increases Railmark’s financial and management capacity, allowing the Company to focus more on its domestic track construction and maintenance business, its international railroad projects and the launch of its new ECORail Products Inc. line of environmentally safe products for the railroad and utility industries.