Re: Whats going on at the Nevada Northern?
Author: CC
Date: 02-19-2009 - 12:47
Can you obtain copies of the NNRY's financial statements, since it is a nonprofit organization? Either (1) it is in financial distress and behind in its debt payments, or (2) there is some illicit flow of capital out of the firm which would be easy to do with interlocking relationships among directors, railroad, and bank management.
If they are behind in their vendor payments, I would suspect that there is a serious problem with the 'business' of the railroad, not a problem with corruption. that would also explain why management was saying 'no' to fixing nonessential equipment. I would not jump to the conclusion that the management is corrupting the railroad, if the real problem is that the railroad is heavily indebted.
So what is the financial performance of the railroad?