The state of Maryland, the consortium building the Purple Line, and the bank that is financing the rail project have formally agreed not to take any steps to collapse or otherwise alter the parties’ massive financing arrangement until the end of October.
The decision to retain the status quo — contained in a “forbearance agreement” obtained by Maryland Matters — creates a last-gasp opportunity for the Maryland Department of Transportation and Purple Line Transit Partners to reach agreement on nearly $800 million in cost overruns, financial and legal experts said on Wednesday.
Such a settlement, if it occurs, would allow the consortium to resume work on the Montgomery-Prince George’s rail line, but observers cautioned that the state and Purple Line Transit Partners (PLTP) have been at loggerheads for three years, getting close to a deal only once, last December.
“They’re basically putting everything into forbearance, which means putting it to the side, postponing, to be able to see if they can reach a compromise,” said a Maryland legal expert, one of several seasoned observers who reviewed the document.
Click here to read the rest of the article written by Bruce DePuyt over at Maryland Matters
