AIG collapse could hurt SEPTA


The collapse of American International Group has left public transit agencies scrambling

Link: AIG's  fall a threat to transit agencies [Inky]

SEPTA entered into a 28-year leaseback deal in 2001 for 219 new Market-Frankford Line cars for $21 million, chief financial officer Richard Burnfield said yesterday. He said the money was used for capital projects and some still remained.

"We don't expect to face any problems," Burnfield said, noting that the deadline for finding a new insurer has been extended from Oct. 31 to Jan. 15.

Nationwide, transit agencies in Atlanta, Chicago, Los Angeles, San Francisco and Washington face bank demands for payment. The fallout could mean less money for new trains and buses at a time when ridership in many areas has been steadily climbing because of high fuel prices.

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