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Last week, Railpower Technologies Corp. and R.J. Corman Railroad Group L.L.C. reached an agreement under which R.J. Corman will acquire most of Railpower’s assets and its U.S. subsidiary. The deal doesn’t include cash on hand and on deposit in financial institutions, land and property located in St-Jean-sur-Richelieu, Quebec, and two road switchers.

Closing, which is contingent upon court approval in both Canada and the United States, is expected to occur no later than May 20. Railpower is operating under court protection through Canada’s Companies' Creditors Arrangement Act.

R.J. Corman has agreed to sell certain assets to a group of Railpower managers, who plan to form a wholly owned corporation named Management Newco. The assets include RTG crane technology and royalty free license to use intellectual property rights in any hybrid applications.

R.J. Corman and Management Newco plan to hire about 75 percent of Railpower's current workforce. R.J. Corman also plans to continue advancing Railpower’s Gen-Set locomotive technology.