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(Source: Reuters, August 3, 2023)

Canadian Pacific Kansas City, formed in April when Canadian Pacific Railway merged with Kansas City Southern, has been sued by bondholders for failing to repay more than $1 billion after missing a deadline tied to the merger. In a complaint filed on Wednesday night in Manhattan federal court, a trustee for Canadian Pacific’s $1 billion of 3% bonds maturing in 2041 said the railroad was motivated not to redeem the bonds because it would cost several hundred million dollars in extra interest payments to replace them.

Full story: Reuters