(The Kansas City Star posted the following article by Randolph Heaster on its website on April 8.)
KANSAS CITY, Mo. — Kansas City Southern said it has received a waiver from more than 96 percent of its lenders on its financial obligations under a credit agreement.
Kansas City Southern sought the waiver because it may become obligated to acquire the Mexican government’s interest in Grupo TFM, which Kansas City Southern operates with a Mexican transportation company.
Kansas City Southern and its partner, Grupo TMM, together or separately may have to buy the Mexican government’s 20 percent interest in the railroad after Oct. 31.
Kansas City Southern said that while its current cash position would have allowed it to meet its obligations to lenders, the waiver allows the company to maintain its cash while exploring financial alternatives.