HIST113 Chapter Notes - Chapter 6: North Island Main Trunk, Grain Trade
28 Dec 2015
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Document Summary
The creative financing of an unprofitable enterprise: the. Study of the building and financing of the continued operation of. A financial failure this is an examination of its financial records and how it stayed afloat through debt reorganizations. Sold new securities that had priority over existing issues. Routinely issued securities in lieu of interest payments. Discussion of the grand trunk securities and how investors accurately assessed the value. Including their calculations that the canadian government would bail them out. Grand trunk was on verge of bankruptcy almost from its. Able to acquire the financing through regular debt restructures. It periodically sold new securities that had priority over the existing issues. It routinely issued securities in lieu of interest payments. Investors continually allowed reduced claims on company assets. Banked on the idea that canada would not let the railway fail, and thusly continued to invest. From the on set reports of shady dealings between politicians and investors (one in the same)
