MILO – A Florida-based railroad company is rumored to be considering buying or merging with the struggling Bangor and Aroostook Railroad. B&A reportedly faces unpaid tax and electric bills.

The railroad, which operates 858 miles of line in Maine, Vermont and Quebec, has been struggling financially of late and is looking for a new owner or corporate partner to provide an infusion of cash to help bring the rail line out of debt. Dan Sabin, chief operating officer of the company, confirmed Monday that the company was looking for a new partner or owner, but declined to name a price for the rail line.

Rail America, based in Boca Raton, Fla., is said to be contacting B&A’s creditors and inquiring as to the value of the Maine company’s holdings. The Florida company, with assets of $141 million, is said to be looking to buy other companies, according to Nelson’s Directory of Investment Research.

B&A provides freight service for major producers of paper, lumber, wood and agricultural products in Maine. It employs about 350 people, according to the company’s Web site.

Jane Jones, Milo town manager, said she was contacted by a representative of Rail America last week who asked about the amount of back taxes B&A owed to the town. The man didn’t go into great detail about why he was making the inquiry, Jones said, except to say that his company was interested in purchasing B&A.

“He didn’t elaborate beyond what anybody who is looking into an investment would,” Jones said.

Jones said B&A owes the town nearly $109,000 in back taxes, and came “within hours” of a tax foreclosure on the property last November. Similar liens on the property will mature this November, Jones said, and could lead to foreclosure on the property.

In addition, Jones said several area businesses are trying to collect on debts owed by the struggling rail line. Other local businesses, Jones said, have demanded that the company provide upfront cash before being provided goods or services.

B&A also has had difficulties with a San Francisco company that provided the Maine rail line with 28 locomotives under a lease agreement. B&A was past due on the lease by more than $1 million, but said it was withholding payment because the locomotives were provided to them in poor condition. The locomotives eventually were returned to the California company under a settlement agreement.

The Occupational Safety and Health Administration also hit B&A earlier this month with 48 allegations of workplace safety violations at its Milo facility. Those violations, which B&A may contest, are accompanied by $133,000 in fines.

Sabin said that company is financially stable, and is capable of remaining financially solvent. Rumors of financial difficulties at B&A, Sabin said, are the work of “people who don’t understand” the company and media willing to report their comments.

Sabin said there would be no increase in rates for freight shipment or reduction of services by the company. He also said that B&A will not lay off any employees.

Sabin said the company is in a traditional first-quarter downturn, but he expected the company would remain healthy. He said the company’s history of good business practices has led to considerable interest among would-be purchasers.

“There’s been a lot of interest,” Sabin said of a possible merger or sale. “Some groups would like to work with us. We’re certainly continuing our search for additional capital.”

Meanwhile, the flow of electricity to the company’s Milo facility was cut off Monday, according to Jones. She said the facility’s 40 employees were sent home shortly after 1 p.m. when the power was disconnected. Jones said she had learned from several employees that the company owed $33,000 in past electrical bills.

Robert Briggs, president of Bangor Hydro-Electric Co., said Monday that he couldn’t confirm that B&A’s power was disconnected because that was confidential customer information.

Jones said the future of the railroad is essential to the long-term plans for the town’s economic development. “Obviously, Milo has a long tradition of railroading,” Jones said. “We would like to see B&A get its financial house in order.”