Fortress Owns FEC But FEC is In Hock to Fortress

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Fortress Owns FEC But FEC is In Hock to Fortress

Postby Gilbert B Norman » Tue Jul 14, 2009 4:41 pm

Andrew Ross Sorkin

The above is reported at a blog by New York Times Financial columnist Andrew Ross Sorkin:

OK class are we all taking notes (they'll be a short quiz coming up)?

Florida East Coast Industries comprising railroad and real estate concern Flagler Development is controlled by Fortress Investment Group, yet FECI is indebted to FIG. The equity investment was made by FIG "wrong time", so FIG has been bailing out FIG with Notes on which the maturities cannot be met at this time....so time to "renegotiate".

Kind of sounds like a "you owe yourself" deal...but then this is post 9/15 America.

Speaking of America, how does Rail America fit into this; if the railroad is part of FECI, how can it be part of RA?

Enquiring mind wants to know.
Gilbert B Norman
 
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Location: Clarendon Hills, IL (BNSF Aurora Sub; MP 18.71)

Re: Fortress Owns FEC But FEC is In Hock to Fortress

Postby Noel Weaver » Tue Jul 14, 2009 4:58 pm

GBN, I sure don't have any idea what they are doing and although it was on the yahoo group, I still don't follow. Of course
finances have not always been a strong point with me anyway.
All I know is that I go out to watch my regular trains a couple of nights a week. I always check on them first now before I
leave the house, I don't go down and just wait anymore. I pin point them first then go.
Business still slow with five or maybe six trains most days, occasionally more. Three years ago we had 12 or 13 trains each
way on weekdays. I have heard some blame RA for the fewer trains but this is the situation throughout the entire industry
and is not just here in South Florida. I hope they gain something from the visits to the Port of Miami a couple of weeks
ago as I reported previously.
There are a lot of good railroaders being hurt by business conditions all over the country.
Noel Weaver
Noel Weaver
 
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Joined: Sat May 29, 2004 9:33 pm
Location: Pompano Beach, Florida

Re: Fortress Owns FEC But FEC is In Hock to Fortress

Postby Gilbert B Norman » Tue Jul 14, 2009 6:15 pm

Let's allow the articles in two leading newspapers stand for themselves; don't feel bad, Mr. Weaver, I too am confused with "the who owns who' in this case - and hopefully as a CPA, I can represent some degree of grounding in financial industry affairs.

But how does Rail America fit into all of this; do they manage the FEC for FECI and in turn FIG, is it simply a marketing agreement. That is what enquiring mind wants to know from the forum.
Gilbert B Norman
 
Posts: 12833
Joined: Fri Mar 12, 2004 6:52 am
Location: Clarendon Hills, IL (BNSF Aurora Sub; MP 18.71)


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