Tank cars and men - Date/Photographer unknown.
3 December 2013
MM&A Buyer to Sign Contract This Week
New York New York USA - Montreal Maine & Atlantic Railway Ltd. (MMA), the bankrupt railroad whose runaway train killed 47 after derailing and burning in Lake Megantic, is in the final throes of negotiating a contract with a so-called stalking horse bidder, trustee Robert J. Keach said in a phone interview.
Keach said a contract to sell the railroad should be signed this week in time for a 16 Dec 2013 hearing to approve auction and sale procedures.
The hearing will be held jointly with the Canadian court supervising a parallel bankruptcy reorganization.
There is "considerable interest," Keach said, from a half dozen "really committed parties" doing "heavy due diligence."
Keach wouldn't disclose the price or the identities of potential buyers.
The sale is to be completed before the railroad finishes reorganizing.
Repairs on the damaged track in Lake Megantic are nearing completion, allowing the railroad to resume carrying cargo between the U.S. and Canada as soon as next week, Keach said.
The inability to carry cross-border freight has depressed revenue.
Although it's legally permitted, the railroad isn't carrying shale oil similar to that which burned and caused the disaster, Keach said.
The railroad reported a $453,000 net loss in October on revenue of $920,000.