US investors buy assets of defunct rail company

2009-06-30 00:40:03 -

COLUMBUS, Ohio (AP) - A group of investors has purchased the assets of a defunct railcar company in hopes of making new passenger trains under President Barack Obama's plan for expanded rail service.
U.S. Railcar LLC intends to make diesel-fueled passenger cars once produced by Colorado Railcar Manufacturing, a Fort Lupton, Colorado-based company that shut down in December because of financial problems.
The new company is based in Columbus, but has yet to identify a manufacturing site.
The investors are affiliated with Value Recovery Group Inc., a Columbus firm that helps resolve disputes and financial obligations between debtors and creditors.
CEO Barry Fromm says the railcar venture aims to re-establish passenger train production in the United States.