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Railpower Considering Liquidation

Locomotive maker says it is considering liquidation as an option under creditor protection, after receiving no better offers from prospective buyers or partners.

BROSSARD, Que. (CP) -- Locomotive maker Railpower Technologies Corp. says it is considering liquidation as an option under creditor protection, after receiving no better offers from prospective buyers or partners.

The company based in Brossard near Montreal says during a restructuring it has not received interest from buyers or partners other than offers that would not "enhance recoveries for the creditors beyond liquidation value."

Raipower, which makes hybrid rail locomotives, said it may seek an extension to its creditor protection deadline, which comes up next Tuesday.

Trading in its shares was halted on the Toronto Stock Exchange.

Railpower received court creditor protection in February. It has been looking for prospective purchasers and investors to help keep its business going.