A worker on a Montreal Maine & Atlantic locomotive - Date unknown Graham Hughes.

4 September 2013

Quebec Court Grants MM&A Railway
More Time to Meet Creditors

Sherbrooke Quebec - The railway company involved in the Lake Megantic train disaster has been granted an extension of its bankruptcy protection until 9 Oct 2013 in order to meet with its creditors and carry on negotiations with potential buyers.
 
Montreal, Maine & Atlantic Railway (MMA) sought bankruptcy protection both in Canada and the U.S. on 7 Aug 2013, one month and a day after a runaway train carrying crude oil derailed and exploded, killing 47 people.
 
Documents filed in Quebec Superior Court show the troubled railway owes its creditors about $90 million.
 
The documents show the company has some $18 million in assets in Canada, in addition to an insurance policy for US$25 million to cover evacuation, fire suppression, pollution cleanup, bodily injury, and property damage.
 
Victims have filed class action lawsuits in Quebec and the U.S., and the Quebec government is demanding the company pay for the disaster cleanup. By MMA's own estimates, the cleanup costs alone could exceed $200 million.
 
MMA Seeking Buyer
 
Lawyers for MMA appeared in Quebec Superior Court in Sherbrooke on Wednesday, asking Justice Gaetan Dumas for more time to reach agreements with creditors and also to find a buyer for the beleaguered railway company.
 
They explained the railway wants to continue operating in order to increase its value and to carry out the process of selling the company.
 
The lawyers estimate they need four months to conclude an agreement.
 
They said they're seeking to maximize the company's sale value in order to repay creditors.
 
In August, the name of J.D. Irving Ltd. came up as a potential buyer for MMA.
 
Mary Keith, a vice-president with J.D. Irving Ltd., said at that time its NB&M Railways unit was assessing its options, but had not made any offer for the railway.
 
Author unknown.

Vancouver Island
British Columbia
Canada