The Las Vegas Railway Express, Inc. (X Train), has terminated its agreement with Union Pacific, effective October 31, 2013, citing an alternative capital plan which will relieve the company from raising $100 million from its own equity to finance the Los Angeles to Las Vegas rail route.
“We have an alternative for off balance sheet financing for this route, which eliminates the need for the company to dilute its shareholders by $100 million,” stated Michael Barron, president and CEO of the X Train. “As a result of this alternative financing plan, we no longer needed to retain the Union Pacific agreement which required the company to make prepaid capital improvement payments of $66 million.”
The alternative financing plan would still finance the LA to Las Vegas route as planned. Further details on the plan were not available at press time.