SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the
Securities Exchange Act of 1934
May 12, 1995
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Date of Report (Date of earliest event reported)
DELAWARE OTSEGO CORPORATION
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(Exact name of Registrant as specified in its charter)
New York 0-12985 16-0913491
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(State or other juris- (Commission (IRS Employer
diction of incorpora- file number) identification
tion number)
1 Railroad Avenue, Cooperstown, New York 13326
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(Address of principal executive offices) (zip code)
607-547-2555
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(Registrant's telephone number, including area code)
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ITEM 2. Disposition of Assets
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On May 15, 1995, the Registrant's subsidiaries Rahway Valley Railroad
Company and Rahway Valley Company, Lessee closed on the sale of substantially
all of the physical assets of those companies, consisting of an 8.8 mile long
rail line in Union County, New Jersey, to the State of New Jersey acting by
and through the Commissioner of the Department of Transportation. The amount
of consideration, $6.4 million, was reached through arms-length negotiations.
The transaction will result in a gain on sale of assets of approximately $5.3
million, to be reported by the Registrant in its second quarter.
ITEM 5. Other Events
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On May 12, 1995 and May 15, 1995, the Registrant issued press releases
in the form attached hereto as Exhibit 1 and Exhibit 2, respectively.
ITEM 7.
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(c) Exhibits
1. Press Release dated May 12, 1995.
2. Press Release dated May 15, 1995.
<PAGE>
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DELAWARE OTSEGO CORPORATION
Dated: May 12, 1995 By: WALTER G. RICH
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Walter G. Rich
President &
Chief Executive Officer
For Immediate Release May 12, 1995
For More Information: Nathan R. Fenno, Ext. 236
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Walter G. Rich, President and Chief Executive Officer of Delaware Otsego
Corporation (NASDAQ Symbol "DOCP"), announced the Company's operating results
for the first quarter of 1995. Mr. Rich stated that for the first three
months of 1995, the Company reported a net loss of $609,523 or $.40 per share
on operating revenues of $7,854,740, compared to a net loss of $1,097,076 or
$.71 per share on operating revenues of $4,980,356 for the same period a year
ago. Mr. Rich reported that the Company's operating loss for the three month
period ended March 31, 1995 declined by $731,704 compared to the respective
1994 period to $599,756, and that depreciation and amortization, a non-cash
expense, totalled $1,014,000 for the quarter.
Mr. Rich attributed the improved results to new traffic handled on behalf
of CSX Intermodal and General Motors since mid-1994, as well as increases in
container traffic handled for Hanjin and in the Company's carload business.
Delaware Otsego Corporation is a non-rail holding company whose principal
subsidiary, The New York, Susquehanna and Western Railway Corporation,
provides rail freight service to customers in New York and New Jersey.
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For Immediate Release May 15, 1995
For More Information: Nathan R. Fenno, Ext. 236
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Walter G. Rich, President and Chief Executive Officer of Delaware Otsego
Corporation (NASDAQ Symbol "DOCP"), announced today that its subsidiaries,
Rahway Valley Railroad Company and Rahway Valley Company, Lessee, have closed
on their previously announced sale of an 8.8 mile rail line in Union County,
New Jersey to the State of New Jersey for $6.4 million. Mr. Rich reported
that the transaction will result in a gain of approximately $5.3 million
which will be recognized in the second quarter, and that the proceeds of the
sale will be used to reduce debt and improve the Company's working capital
position.
Delaware Otsego Corporation is a non-rail holding company whose principal
subsidiary, The New York, Susquehanna and Western Railway Corporation,
provides rail freight service to customers in New York and New Jersey.
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