Texas State Railroad board rejects offer on debt

Updated: Apr. 27, 2017 at 5:06 PM CDT
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RUSK, TX (KTRE) - In a meeting Wednesday, the Texas State Railroad board rejected the latest offer to cure the default owed by Iowa Pacific and conditionally approved a new operating agreement with an Arizona company.

Iowa Pacific has until May 4 to pay off the debt before the board can transition to the agreement with Western Group.

Board President Bob Goldsberry said the agreement with Western Group is contingent on finalizing a few final details.

Iowa Pacific owes approximately $2 million to the cities of Rusk and Palestine.

The board sent a 120-day termination notice to Iowa Pacific in January, meaning the company had that long to pay off the debts.

The board rejected an offer on Wednesday.

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