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FORM 3 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
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INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility
Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
(Print or Type Responses)
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1. Name and Address of Reporting Person*
CS First Boston, Inc.
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(Last) (First) (Middle)
Park Avenue Plaza
55 East 52nd Street
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(Street)
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New York, NY 10055
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(City) (State) (Zip)
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2. Date of Event Requiring Statement (Month/Day/Year)
9/14/96
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3. IRS or Social Security Number of Reporting Person (Voluntary)
13-2853402
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4. Issuer Name and Ticker or Trading Symbol
MK Rail Corporation (MKRL)
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5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
____ Director _X__ 10% Owner
____ Officer (give title below) _X__ Other (specify below)
(Reporting Persons may be deemed members of a group.)
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6. If Amendment, Date of Original (Month/Day/Year)
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7. Individual or Joint/Group Filing (Check Applicable Line)
____ Form filed by One Reporting Person
__X_ Form filed by More than One Reporting Person
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Table I--Non-Derivative Securities Beneficially Owned
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1. Title of Security 2. Amount of Securities Beneficially Owned 3. Ownership Form: Direct 4. Nature of Indirect
(D) or Indirect (I) Beneficial
(Instr. 4) (Instr. 4) (Instr. 5) Ownership (Instr. 5)
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<S> <C> <C> <C>
Common Stock, $0.01 par value 1,885,099 shares (a) I/D (a) By CS First Boston
Securities Corporation
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Common Stock, $0.01 par value 55,000 shares (b) I By CS First Boston
Corporation
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Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
*If the form is filed by more than one reporting person, see instruction
5(b)(v).
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SEC 1473 (7-96)
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FORM 3 (CONTINUED) TABLE II - DERIVATIVE SECURITIES BENEFICIALLY OWNED (E.G., PUTS, CALLS, WARRANTS, OPTIONS,
CONVERTIBLE SECURITIES)
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<S> <C> <C> <C> <C> <C>
1. Title of Derivative 2. Date Exer- 3. Title and Amount of 4. Conversion 5. Owner- 6. Nature of Indirect
Security (Instr. 4) cisable and Securities Underlying or Exercise ship Beneficial
Expiration Derivative Security Price of Form of Ownership
Date (Instr. 4) Derivative Derivative (Instr. 5)
(Month/Day/ Security Security:
Year) Direct
------------------------------------------------------------ (D) or
Date Expira- Amount Indirect
Exer- tion or (I)
cisable Date Title Number (Instr. 5)
of
Shares
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Explanation of Responses:
See page 4. CS First Boston, Inc.
By: /s/ Agnes F. Reicke 10/30/96
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**Signature of Reporting Person Date
**Intentional misstatements or omissions of facts constitute Name: Agnes F. Reicke
Federal Criminal Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). Title: Deputy General Counsel,
Director and Secretary
Note: File three copies of this Form, one of which must be
manually signed. If space is insufficient,
See Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained in this form are not
required to respond unless the form displays a currently valid OMB number.
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SEC 1473 (7-96)
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JOINT FILER INFORMATION
Name: CS First Boston Securities Corporation
Address: Park Avenue Plaza
55 East 52nd Street
New York, NY 10055
Designated Filer: CS First Boston, Inc.
Date of Event
Requiring Statement: September 14, 1996
IRS Identification
Number of
Reporting Person: 13-2972600
Issuer and Ticker
Symbol: MK Rail Corporation (MKRL)
CS First Boston Securities Corporation
Signature: By: /s/ Agnes F. Reicke
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Name: Agnes F. Reicke
Title: Vice President and Secretary
Date: 10/30/96
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SEC 1473 (7-96)
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Names of Reporting
Persons: CS First Boston, Inc.
CS First Boston Securities Corporation
Address of Each of
Reporting Persons: Park Avenue Plaza
55 East 52nd Street
New York, NY 10055
Date of Event
Requiring Statement: September 14, 1996
Issuer and Ticker
Symbol: MK Rail Corporation (MKRL)
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EXPLANATION OF RESPONSES
(a) Pursuant to an order of the United States Bankruptcy Court for the District
of Delaware, dated August 26, 1996, the First Amended Plan of Reorganization of
Morrison Knudsen Corporation ("MKC") under Chapter 11 of the Bankruptcy Code
(the "Plan") was confirmed. Under the Plan, CS First Boston Securities
Corporation ("CSFBSC"), a direct, wholly-owned subsidiary of CS First Boston,
Inc. ("CSFBI"), and a joint filer with CSFBI of this Form 3, became entitled to
receive 1,885,099 shares of Common Stock (the "Aggregate Proceeds"), comprised
of 927,171 shares on account of debt owed by MKC and 957,928 shares on account
of debt owed by American Passenger Rail Company, L.L.C., a Delaware limited
liability company ("APRC"), an affiliate of MKC (the "APRC Proceeds"). The
Aggregate Proceeds and the APRC Proceeds include 519,542 shares (the "Nomura
Proceeds") which CSFBSC became entitled to receive under the Plan on behalf of
Nomura Holding America, Inc. ("Nomura"), as a result of purchases of debt owed
by APRC made pursuant to an oral agreement entered into between CSFBSC and
Nomura in June 1996 (the "Nomura Agreement"). Under the Nomura Agreement, CSFBSC
has agreed to irrevocably transfer, assign and convey to Nomura specified
percentages of the debt owed by APRC and purchased by CSFBSC at various times,
or the proceeds thereof (which constitute the Nomura Proceeds), upon the payment
to CSFBSC by Nomura of the specified percentages of CSFBSC's actual cost of the
related purchases, plus an amount based on CSFBSC's cost of carry of the
purchases from the dates of such purchases. Upon the receipt of payment under
the terms of the Nomura Agreement, CSFBSC will transfer, assign and convey the
Nomura Proceeds to Nomura, and the Reporting Persons will have no further
arrangements with Nomura with respect to the Nomura Proceeds or the securities
of MK Rail, except to the extent the Nomura Proceeds are subject to the
Stockholders Agreement described below. The Reporting Persons disclaim
beneficial ownership of the Nomura Proceeds for purposes of Section 16 of the
Securities Exchange Act of 1934, as amended (the "Exchange Act").
The Plan required creditors of MKC, including CSFBSC, to be bound by the
terms of a Stockholders Agreement dated as of June 20, 1996, and as amended by
the First Amendment to the Stockholders Agreement dated as of July 25, 1996,
between MK Rail and MKC (the "Stockholders Agreement"). The Stockholders
Agreement provides that the shares of Common Stock received by CSFBSC and the
other stockholders bound thereby (the "Stockholders") must be voted for certain
nominees for election to MK Rail's board of directors. The Reporting Persons and
the Stockholders may be deemed to constitute a group for purposes of Section
13(d)(3) of the Exchange Act because of the Stockholders Agreement. The
Reporting Persons disclaim beneficial ownership of the shares of Common Stock
held by the Stockholders and disclaim that they constitute a group with the
Stockholders for purposes of each of Section 13(d)(3) and Section 16 of the
Exchange Act.
(b) CS First Boston Corporation ("CSFBC"), a direct, wholly-owned subsidiary of
CSFBI, acts as a market maker in the Common Stock. As of the filing date, CSFBC
held 55,000 shares of Common Stock in its trading account, acquired from time to
time in open market transactions in the ordinary course of its market making
activities.
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