Business bankruptcy rarely is associated with optimism – more often than not, the long legal process it describes ends with closed doors, out-of-work employees and harmed creditors. Although the bankruptcy of the Bangor & Aroostook Railroad could go that route, it has the potential to emerge from reorganization better and stronger, an even greater asset to the northern Maine region it serves.

The question is whether it emerges intact as a working freight line or in pieces, with a few profitable sections sold to the highest bidder and the rest sold for scrap. The answer is money.

Although a more complete picture of how B&A got into its current mess will emerge once documents are opened in bankruptcy court, it is clear that the railroad’s primary problem is that it has been operated for the last decade or so as though there was no tomorrow – investment is maintenance and improvements simply were not made, bills were not paid. The result is crumbling infrastructure and $123 million in claims against assets of $35 million.

The optimism comes from the interest shown by local officials and business leaders, state government and the state’s congressional delegation in keeping the B&A whole. Meetings last week in Bangor and Greenville with officials of a Connecticut-based railroad – Genesee and Wyoming Inc. – add

to hope for a favorable outcome.

GWI is interested in buying the entire B&A, just not at the $60 million asking price. The gap between what GWI can justify as a sound investment and what it will take to satisfy creditors is one those local, state and federal leaders must fill. The size of that gap will be known once a trustee to oversee the bankruptcy is appointed – perhaps within a few days – and the trustee develops a reorganization plan – perhaps within weeks – but it is estimated to be in the range of $25 million.

Fortunately, those leaders have not been sitting idly by. At the local level, businesses and government have been building coalitions and lining up commitments for expanded use of freight rail after the necessary improvements are made. The state Department of Transportation has been actively engaged in this issue from the

start; it has some money available and understands the importance of using it to save this line. In Washington, Rep. John Baldacci has pulled together a package of federal assistance possibilities, such as low-interest loans and grants.

This potential economic disaster can be turned around to real improvement. The track upgrades would allow faster trains, increasing efficiency and lowering transport costs, giving a part of the state hammered by business loss a shot at business attraction. Restoring the Calais Branch could be part of a complete rail overhaul, providing much-needed rail access to the port of Eastport and creating new opportunity where it is desperately needed. Most importantly, the unified public-private effort it will take to keep the B&A whole gives a region often overtaken by events a chance to drive them.