Re: EL class update ( was freight victoria update)

[mauried@commslab.gov.au (Maurie Daly)]

In article <88dojr$q7j$1@news1.mpx.com.au> "Dave Proctor" <thadocta@spambait.dingoblue.net.au> writes:
>From: "Dave Proctor" <thadocta@spambait.dingoblue.net.au>
>Subject: Re: EL class update ( was freight victoria update)
>Date: Wed, 16 Feb 2000 19:50:29 +1100

>Maurie Daly wrote in message ...
>>In article <88deru$2mj$1@news1.mpx.com.au> "Dave Proctor"
><thadocta@spambait.dingoblue.net.au> writes:
>>>From: "Dave Proctor" <thadocta@spambait.dingoblue.net.au>
>>>Subject: Re: EL class update ( was freight victoria update)
>>>Date: Wed, 16 Feb 2000 17:07:01 +1100
>>
>>>Bob wrote in message <38AA3DA6.16A0DF07@acay.com.au>...
>>>>Two points here. First NRC own the NRs and can do whatever they want with
>>>them,
>>>>only obligation they have to Goninans is they have a contract to service
>>>them.
>>
>>>Depends on the nature of the contract - Goninans *could* have a clause in
>>>the contract that the NR's can only be driven by Goninan approved drivers.
>>
>>>Unless you know differently of course.
>>
>>>Dave
>>
>>Id be real interested in how they can own them .
>>Just where did NRC get a spare $400 M to buy them. (didnt get it from the
>>shareholders thats for sure.)
>>According to their annual report , they have
>>raised a $300 M US dollar debenture issue at 8% to pay for them.
>>I think you will find that they are owned by a US bank ,in the same way
>that
>>AN didnt own its ANs or ELs.

>Which adds even further weight to the argument that there *could be* (not
>saying *are*) restrictions on just who can and can't drive them.

>Dave


Here is the relevant information from NRCs financial statements in the current 
annual report.

Sorry for the crummy formatting but NRCs data is in HTML.

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(b) Other Financing Arrangements

Borrowings Program

In June 1995, the Board of Directors approved a financing strategy to assist in funding the acquisition of a new locomotive fleet.







New Locomotive Fleet

Delivery of the new locomotive fleet is now complete. A retrofit of communications equipment to locomotives is in progress and is expected to be completed by March 1999.

The new locomotive fleet is subject to four 13½ year domestic leveraged leases. Lessors have 'put' options involving financing reviews should government shareholding in the company fall below 75% during the contract period.

During 1997/98, drawdowns under the four domestic leveraged leases involving 72 locomotives (1997 40 locomotives) with a value of $216.000 million (1997 $120.000 million) occurred and equity deposits established.




-------------------------------------------------------------------------------

I suggest if you want to read this in full then have a look at NRCs last 
annual report. (www.nationalrail.com.au)
This info is in the abridged version.
It seems the NRs are leverage leased,in the same way as ANs EL and AN class 
and Vlines G class.
In all these cases the locomotives are owned by the lessor until the lease 
period expires or the lease is paid out.
This was one of the main reasons why Vline couldnt transfer any Gs to NRC as 
part of the shareholders agreement,(cant transfer what you dont own) and why 
the Vic Govt had to pay out the leases to enable FV to buy them.
None of this really matters of course in the day to day operations of NRC but 
it does to some extent affect the sale.

cheers
MD