Summary: If Amtrak were forced into bankruptcy, its creditors would likely face losses in the event of a liquidation of assets. However, the costs associated with a possible liquidation are difficult to predict because they will depend on such uncertainties as Amtrak's debt and financial obligations, the value of assets, and the proceeds from the sale of assets. The extent to which creditors' claims could be paid would depend in large part on the value of assets available to satisfy such claims. As of September 1997, the value of one of Amtrak's largest assets--real property on the Northeast Corridor--totaled $4.3 billion. However, the market value of this property is untested and may be affected by the easements that commuter and freight railroads possess to provide service on the Northeast Corridor. For participants in the railroad retirement and unemployment systems, an Amtrak liquidation would result in higher payroll taxes on employers and employees of other railroads or reduced benefits to compensate for the loss of Amtrak's annual contributions. The liquidation of Amtrak could also disrupt intercity and other passenger rail service.
