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GE CAPITAL RESTRUCTURES CHRYSLER RAILCAR TRANSACTION

 STAMFORD, Conn., Oct. 5 /PRNewswire/ -- GE Capital Railcar Services today announced a restructuring of the previously reported transaction involving the purchase from Chrysler Rail Transportation Corp. of a portfolio of different types of railcars.
 The restructuring eliminates from the transaction "grandfathered" or "grandfatherable" boxcars (those boxcars which were owned or controlled by shortline railroads on Dec. 31, 1983, and under ICC regulation earn uniquely protected rates).
 The restructured portfolio of railcars being acquired will still include covered hopper cars, open hopper cars, gondolas, tank cars, other railcars and related management agreements as well as a limited number of boxcars which are neither "grandfathered" nor "grandfatherable" nor covered by leases which include "grandfathered" or "grandfatherable" boxcars.
 Robert Speetzen, president of Railcar Services, said, "We have decided upon this restructuring in light of the concerns expressed by several of our customers, other industry participants and the opposition of the Federal Trade Commission. In restructuring, we have excluded from the acquisition boxcars that are "grandfathered" or "grandfatherable". Those cars were the focus of concerns expressed to the FTC by a number of smaller railroads.
 "While we are pleased with this resolution, we continue to believe that the original transaction would have been beneficial to all our customers by enabling GE Capital Railcar Services to provide value-added services on an efficient basis in a highly competitive market," explained Speetzen.
 GE Capital Railcar Services is a wholly-owned subsidiary of GE Capital Services, a diversified financial services company headquartered in Stamford. GE Capital's activities include equipment management, mid- market financing, specialized financing, specialty insurance and consumer services.
 -0- 10/5/93
 /CONTACT: Patricia D. Yoder, of GE Capital Railcar Services, 203-357-3965, or home, 203-629-0968/


CO: GE Capital Railcar Services; Chrysler Rail Transportation Corp. ST: Connecticut IN: TRN SU:

TM -- NY071 -- 9063 10/05/93 16:56 EDT
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Publication:PR Newswire
Date:Oct 5, 1993
Words:301
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