BANGOR, Maine (Oct. 9, 2001) — The Bangor & Aroostook Railroad System, the financially troubled “lifeline” between New Brunswick and Central Canada, is being sold to a consortium of U.S. railroad companies for $62 million US.

The buyers consist of Rail World, a Chicago-based rail management and investment corporation, among other investors. The sale includes the Quebec Southern Railway and the Canadian American Railroad. B&A and it subsidiaries offer service from New Brunswick to Quebec, crossing Maine, where there is no efficient truck route.

“We are very fortunate to have such an experienced and successful group of rail executives purchasing our railroads,” said B&A president Frederic Yocum in a press release. “We plan to conclude the transaction as quickly as possible, with a goal for transfer no later than Dec. 31, 2001. Our first priority is to continue vital rail services to our customers while working toward this goal.”

In August, B&A creditors applied to have the company placed under bankruptcy protection. The New Brunswick Southern Railway, an Irving-owned company, had applied to operate the line if it had gone out of business before finding a new owner.