After itself going bankrupt in 1973 the Ann Arbor ceased operations as a railroad on April 1, 1976, when the Consolidated Rail Corporation (Conrail) temporarily took over. Since Conrail only wished to operate the south end of the AA, the state of Michigan acquired the entire line, and operations were transferred to the Michigan Interstate Railway, a division of the Michigan Department of Transportation (MDOT), on October 1, 1977. The state eventually privatized this entity, selling it off in pieces to several different short-line railroad companies.