MONCTON, New Brunswick — A Moncton developer and former owner of a rail equipment company owes the province of New Brunswick almost Ca$5 million as a result of a failed effort to refurbish rolling stock for VIA Rail Canada, the CBC reports.
Court of King’s Bench Justice Thomas Christie ruled earlier this month that developer Richard Carpenter has “no discernible defence” against paying a $3 million personal guarantee Carpenter made to the province in 2008 for a $12.5 million loan guarantee to his company Industrial Rail Services Inc.
IRSI held contracts with VIA to refurbish Bombardier LRC passenger cars, retrofit British-built Renaissance railcars to meet accessibility requirements, and rehabilitate a half-dozen Diesel Rail Cars [see “Modernizing a legend: the RDC,” “Passenger,” Trains Magazine, February 2011]. The province made the loan in hopes of establishing Moncton as a center of rail manufacturing and saving local jobs, but IRSI ceased operations in March 2012 having completed just 10 of the 98 LRC rebuilds required under a Ca$109 million contract.
In all, the company received more than Ca$20 million in provincial funding.
Along with the $3 million, Carpenter owes more than $1.98 million in interest, the judge ruled. A lawyer for Carpenter declined comment except to tell the CBC that an appeal is being considered.
Hello Justin?