Does anyone have the true story on the transaction that sent the D&H PA's to Mexico? A search turns up much confusion and speculation. Were there some shady dealings going on? Was there any ill intent or a revenge motive behind this whole sordid affair?

Some comments from another board copied below:

"I don't think the D&H sold them to the mexicans. I recall reading that these units were still owned by a bank, as their new equipment trusts hadn't come close to being paid off. They still had some decent book value due to the aforementioned fairly recent rebuilds. So the bank got a reasonable return by selling them to Mexico for much more than any preservation group or scrap dealer would have been willing to pay."

"I always thought the State of New York owned them as they paid for them
to be rebuilt, thats why I could never understand how the D & H sold
them to Mexico."

"I've been following this story for 23 years since I first found out D&H PA's were operating in Mexico and I've never seen, heard, nor read a thorough, detailed explanation about how the whole transaction that sent the PA's to Mexico came about.
Guilford didn't purchase the D&H until 1984, for the whopping sum of $500,000. Previous to that time, D&H was struggling to survive as an independent bridge line railroad deep in Conrail territory after being cut loose from Dereco, a holding company owned by Norfolk & Western that also controlled Erie-Lackawanna. EL was absorbed into Conrail, but D&H was not, and so had to go it alone.
In its struggle to survive in the financially-ravaged railroad landscape of the east, I'm sure D&H was forced to maximize financial assets wherever it could. Selling surplus locomotives that might have otherwise been donated to museums would have been one way to do it.
Previous to going to Mexico, the PA's were leased to MBTA for Boston area commuter service, but MBTA eventually returned to EMD products, (F10 and GP rebuilds, etc.)
The recently-rebuilt status of the PA's in 1978 probably worked against them in a way. If they'd been tired and worn out, donation or sale at scrap value might have been more feasible to the D&H. (Of course they might have just ended up as scrap at Naporano or Pielet Bros., too.)"

"As I have heard both the terms "leased" and "sold" regarding the Mexican transaction I suspect they were sold to a leasing company which in turn leased them to the Mexican carrier. Let me be careful to label this as speculation as that's all it is. Not sure it matters much in any case."