Trainsmag.com just reported that Congress,as part of negotiations on a defense appropriations bill that includes other spending, barred Amtrak from spending any of its funds for preparing a liquidation plan.
When the Amtrak Reform Council found November 9 that Amtrak would not meet the congressional deadline for reaching operational self-sufficiency,it triggered a 90-clock under which Amtrak has to prepare a liquidation plan. Simultaneously, ARC must prepare a passenger rail restructuring proposal for congress.
Assuming the president signs the bill, Amtrak won't have to prepare a liquidation plan as Congress had contemplated as part of the 1997 Amtrak Reform and Accountability Act. Amtrak was pleased with the measure, which will help smooth relationships with its creditors and suppliers.
"The Congress sent a clear message that Amtrak will not liquidated," Amtrak spokesman Bill Schulz told The Associated Press.
The defense bill also include $100 million for safety improvements in the tunnels leading to Penn Station in New York, far less than the $900 million Amtrak had sought.
Meanwhile, Amtrak critic Rep. John Mica, a Florida Republican, last week introduced a bill that would force Amtrak to spin off the Northeast Corridor and the Virginia-Florida Auto Train. It is one of several bills likely to be filed as Congress takes up debate on what to do about Amtrak and Passenger Rail.
Well guys out there what is your reaction to this.
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