@redrockbill posted:IIRC, a settlement was reached between K-Line and Lionel that would have allowed K-line to continue operations. However, after the settlement was announced, K-line issued a press release that completely misrepresented the facts of the lawsuit and the settlement. Lionel and the court both took issue with that and the penalties and revised settlement imposed by the court are what precipitated K-Line's bankruptcy. Whether K-Line would have had the financial wherewithal to continue operations after the initial settlement is unknown, but it is clear that by issuing the press release that led to changes to that first settlement with Lionel, their fatal wound was self-inflicted.
That is EXACTLY how I remember the events that lead to K-Line’s demise.