Case | HBS Case Collection | 2000 (Revised from original 1989 version)

Wisconsin Central Ltd. Railroad and Berkshire Partners (A): Leveraged Buyouts and Financial Distress

by Michael C. Jensen, Willy Burkhardt and Brian Barry

Abstract

Wisconsin Central Ltd. is a regional railroad formed in a leveraged buyout, which is currently in default on its loan covenants. The case uses this situation to examine the financial structure of a typical LBO association and its internal control mechanisms and distinct role of the board of directors.

Keywords: Financial Management; Governing and Advisory Boards; Leveraged Buyouts; Financial Condition; Financing and Loans; Corporate Finance; Rail Industry;

Format: Print

20 pages

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Citation:

Jensen, Michael C., Willy Burkhardt, and Brian Barry. "Wisconsin Central Ltd. Railroad and Berkshire Partners (A): Leveraged Buyouts and Financial Distress." Harvard Business School Case 190-062, March 2000. (Revised from original November 1989 version.)

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