NYRR - NYRR Receives Additional Investment, Reduces Liabilities & Unveils Capital Improvement Initiative
Thu Apr 08 12:28:00 2004 EST
NEW YORK, Apr 8, 2004 (BUSINESS WIRE) --
New York Regional Rail
(OTCBB:NYRR) is pleased to announce that, pursuant to the Investment
Agreement dated February 4, 2004, Transit Rail LLC, has invested an
additional $250,000 in the Company.
Since December 31, 2003, the Company has settled over $1,200,000
of liabilities through payments and conversions, most at discounted
value. This includes the previously announced approximately $730,000
reduction of long-term debt also at favorable terms for the Company.
"Since February 4th,, the Company has paid approximately $550,000
to settle various short-term debt, note and trade payables. The Notes
payable and most of the short-term debt was repurchased at a discount.
It should be noted that the retirement of these notes payable
eliminates significant potential dilution, as they could have been
converted into 7,867,836 shares of the Company's common stock. We're
very pleased to have these items off our balance sheet", said Joel
Marcus, CFO and member of the Board of Directors.
Wayne Eastman, President of NYRR, added, "The Company has
undertaken a major capital improvement initiative, which is intended
to improve reliability and provide enhanced service for our customers.
These infrastructure improvements include all equipment and facilities
used in the Company's rail operations including rail tracks, barges
and bridges. We expect the first phase of the initiative to be
completed by May 1, 2004."
"The Company has also entered into a purchase agreement for two
locomotives which the Company uses daily. Terms include purchase of
the two engines for $120,000 of which $60,000 has been paid and the
remainder will be paid over the next 120 days. In addition,
approximately $83,000 of accounts payable as of December 31, 2003, for
engine rental will be forgiven," he concluded.
"Under the direction of our board, management team and the
strategic investor, we continue to reduce liabilities, have begun to
rehabilitate our rail and infrastructure and are positioning of our
Company for its future," said Gordon Kuhn Chairman of the Board of
Directors.
NEW YORK REGIONAL RAIL is a transportation holding company. Its
two principal subsidiaries are New York Cross Harbor Railroad ("NYCH")
and JS Transportation.
NYCH owns and operates the only rail-float barge operation in the
New York Harbor. NYCH serves businesses on both sides of the harbor
with daily crossings between Jersey City, NJ and Brooklyn, NY. NYCH's
operation provides New York City and Long Island with connections to
the national rail freight system.
JST is a growing short-haul regional trucking company, whose
clients include many Fortune 1000 companies. JST currently serves the
Eastern United States.
To learn more about New York Regional Rail's complete
transportation solutions, visit our website at www.nyrr.com or
contact:
Wayne Eastman, at (201) 433-0360.
This release contains certain forward-looking statements which
involve known and unknown risks, uncertainties or other factors not
under the company's control which may cause actual results or
performance achievements of the company to be materially different
from the results, performance or expectations implied by these
forward-looking statements. These factors include, but are not limited
to, those detailed in the Company's periodic filing with the
Securities and Exchange Commission.
SOURCE: New York Regional Rail
New York Regional Rail
Wayne Eastman, 201-433-0360
www.nyrr.com
AI
