By 1995, Morrison–Knudsen was facing bankruptcy, with more than 60% of the company's previous-year net loss of $350 million occurring in the MK Transit division. A special purpose company, named Amerail (American Passenger Rail Car Company), was formed so that Morrison–Knudsen could divest itself of this loss-making division, while also allowing the remaining MK Transit contracts to be completed. The new company was funded by Morrison–Knudsen's creditors, led by the Fidelity and Deposit Company in Baltimore, and was headquartered in Chicago.