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.